In This Article:
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Consolidated Net Loss: $104.4 million or $0.91 per share for the third quarter.
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Wildfire Liabilities Accrual: Additional $203 million pre-tax loss recorded for estimated wildfire liabilities.
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Pacific Current Asset Impairment: $35.2 million pre-tax asset impairment recorded.
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Utility Core Net Income: $43.7 million in the third quarter, down from $53.8 million in the same quarter last year.
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Bank Core Net Income: $19.4 million for the quarter, up from $17.6 million in the same quarter last year.
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Holding Company Core Net Loss: $10.9 million compared to $9.9 million in the same quarter last year.
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Core Net Income: $52.2 million for the third quarter, compared to $61.5 million in the same quarter last year.
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Cash on Hand: $678 million at the holding company and $148 million at the utility as of the end of the third quarter.
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Equity Issuance Proceeds: Approximately $558 million from newly issued shares of common stock.
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Accounts Receivable Backed Credit Facility: $250 million facility approved for short-term and up to $100 million for long-term financing needs.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hawaiian Electric Industries Inc (NYSE:HE) finalized a definitive settlement agreement for the Maui wildfire tort litigation, providing a clearer path forward for the company.
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The utility has rapidly advanced its wildfire risk mitigation strategies, including the implementation of a public safety power shutoff program and deployment of advanced technologies.
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American Savings Bank, a subsidiary of HE, continues to perform well with strong net income and profitability, benefiting from strategic balance sheet repositioning.
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Economic indicators in Hawaii remain healthy, supporting strong credit quality across the bank's loan portfolio.
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HE successfully closed an equity offering, raising approximately $558 million, which will be used to fund the first settlement payment and for general corporate purposes.
Negative Points
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HE recorded a consolidated net loss of $104.4 million for the quarter, impacted by significant one-time losses related to wildfire liabilities and asset impairments.
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The utility's core net income decreased due to higher operating and maintenance expenses, including costs related to wildfire mitigation and increased insurance premiums.
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HE faces ongoing legal proceedings with insurers regarding the Maui wildfire claims, adding uncertainty to the settlement process.
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The company recorded a $35.2 million pre-tax asset impairment at Pacific Current, reflecting challenges in its strategic review process.
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Despite resolving the going concern issue, HE still faces significant financial obligations with the settlement payments scheduled over the next four years.