RYAM - Rayonier Advanced Materials expects force majeure to reduce EBITDA

• Rayonier Advanced Materials ( NYSE: RYAM ) said its facility at Jesup, Georgia, has been impacted by a force majeure declared by its natural gas provider, Southern Natural Gas Company, and the event is expected to reduce its EBITDA.
• Southern Natural Gas Company had declared the event due to an unscheduled outage of the Elba Express Pipeline's Hartwell Compressor Station.
• RYAM's Jesup facility is subject to a financial penalty, and the company expects the event to reduce EBITDA by ~$775K to $900K per day.
• Also, if the event were to continue through 2022-end, RYAM estimates that its aggregate EBITDA would be ~$6M to $7M lower than it otherwise would have been without the financial penalty.
• The company had expected its FY22 adjusted EBITDA to exceed $175M, but the event may cause adjusted EBITDA to be below that amount.
• Source: Press Release

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