Covia Holdings LLC

Overview Key strengths Key risks Rebound in oil prices after the COVID-19 pandemic continues to drive strong demand in the energy segment. Energy segment prone to cyclicality and volatile oil prices. Good revenue visibility based on strong contracted positions for 2023 and 2024. Financial sponsor ownership may lead to aggressive financial policies. Reduced cyclicality due to increased focus on industrial segment. Increasing interest expense due to variable rate on term loan. We anticipate Covia likely generated EBITDA of $290 million-$320 million in 2022, which we expect to rise to $300 million-$340 million in 2023, both of which compare favorably with $226 million generated in 2021. The increase in EBITDA has largely been spurred by strong demand in the energy sector

...Covia Holdings LLC's EBITDA and margins could expand meaningfully, spurred by a sustained rebound in the energy segment. We anticipate Covia likely generated EBITDA of $290 million-$320 million in 2022, which we expect to rise to $300 million-$340 million in 2023, both of which compare favorably with $226 million generated in 2021. The increase in EBITDA has largely been spurred by strong demand in the energy sector where oil prices remain elevated beyond pandemic lows, leading to increased drilling...

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