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HEI(HE) - 2024 Q3 - Quarterly Results
HEHEI(HE)2024-11-08 21:13

Financial Performance - HEI reported a consolidated net loss of 104.4million,or104.4 million, or 0.91 per share, for Q3 2024, which includes a 203.0millionaccrualforestimatedwildfireliabilities[1].−CorenetincomeforQ32024was203.0 million accrual for estimated wildfire liabilities[1]. - Core net income for Q3 2024 was 52.2 million, down from 61.5millioninQ32023[3].−HawaiianElectric′snetlossforQ32024was61.5 million in Q3 2023[3]. - Hawaiian Electric's net loss for Q3 2024 was 82.6 million, compared to net income of 43.5millioninQ32023,primarilyduetoa43.5 million in Q3 2023, primarily due to a 121 million after-tax loss from wildfire liabilities[11]. - The net loss for common stock was (104,402)thousandforthethreemonthsendedSeptember30,2024,comparedtoanetincomeof(104,402) thousand for the three months ended September 30, 2024, compared to a net income of 41,118 thousand in the same period of 2023[28]. - Basic earnings per share for the three months ended September 30, 2024, were (0.91),downfrom(0.91), down from 0.37 in the same period of 2023[28]. - GAAP net income for the three months ended September 30, 2024, was (104,402)thousand,comparedto(104,402) thousand, compared to 41,118 thousand in 2023, reflecting a significant decline[37]. - Non-GAAP (core) net income for the same period was 52,155thousand,downfrom52,155 thousand, down from 61,508 thousand year-over-year[37]. - The company reported a GAAP diluted loss per share of (0.91)forQ32024,comparedtoearningsof(0.91) for Q3 2024, compared to earnings of 0.37 per share in Q3 2023[37]. - Non-GAAP diluted earnings per share for Q3 2024 were 0.46,downfrom0.46, down from 0.56 in the same quarter of 2023[37]. Revenue and Expenses - Total revenues for the three months ended September 30, 2024, were 938,383thousand,anincreasefrom938,383 thousand, an increase from 901,873 thousand in the same period of 2023, representing a growth of approximately 4.3%[28]. - The electric utility segment reported revenues of 829,617thousandforthethreemonthsendedSeptember30,2024,comparedto829,617 thousand for the three months ended September 30, 2024, compared to 794,987 thousand in the prior year, reflecting an increase of about 4.4%[28]. - Total expenses increased significantly to 1,064,931thousandforthethreemonthsendedSeptember30,2024,from1,064,931 thousand for the three months ended September 30, 2024, from 826,762 thousand in the same period of 2023, marking a rise of approximately 28.8%[28]. - The electric utility segment incurred an operating loss of (104,564)thousandforthethreemonthsendedSeptember30,2024,comparedtoanoperatingincomeof(104,564) thousand for the three months ended September 30, 2024, compared to an operating income of 71,358 thousand in the prior year[28]. Wildfire-Related Expenses - Incremental after-tax Maui wildfire-related expenses totaled 126.3million,impactingHawaiianElectric′scorenetincome[13].−Thecompanyrecordedaprovisionforwildfiretort−relatedclaimsof126.3 million, impacting Hawaiian Electric's core net income[13]. - The company recorded a provision for wildfire tort-related claims of 163 million in the third quarter of 2024[28]. - The company incurred 236,396inpretaxexpensesrelatedtotheMauiwildfires,withasignificantportionattributedtowildfiretort−relatedclaims[35].−After−taxadjustmentsrelatedtowildfireexpensesamountedto236,396 in pretax expenses related to the Maui wildfires, with a significant portion attributed to wildfire tort-related claims[35]. - After-tax adjustments related to wildfire expenses amounted to 156,557, compared to 20,390inthepreviousyear[35].−Wildfiretort−relatedclaimsexpensesreached20,390 in the previous year[35]. - Wildfire tort-related claims expenses reached 150,727 thousand for Q3 2024, significantly higher than 55,688thousandinQ32023[37].−Thecompanyincurredafter−taxexpensesof55,688 thousand in Q3 2023[37]. - The company incurred after-tax expenses of 175,514 thousand related to the Maui wildfire for the three months ended September 30, 2024[37]. - The total after-tax expenses related to Maui windstorm and wildfires for the nine months ended September 30, 2024, were 1,404,495thousand[40].AssetandEquity−HEI′sassetimpairmentforPacificCurrentwas1,404,495 thousand[40]. Asset and Equity - HEI's asset impairment for Pacific Current was 35.2 million, contributing to a net loss of 40.6millioninholdingandothercompaniesforQ32024[18].−ThereturnonaveragecommonequityforthetwelvemonthsendedSeptember30,2024,wasnotmeaningful(NM),comparedto9.540.6 million in holding and other companies for Q3 2024[18]. - The return on average common equity for the twelve months ended September 30, 2024, was not meaningful (NM), compared to 9.5% in the prior year[28]. - The efficiency ratio based on GAAP for 2024 was 70.30%, an improvement from 72.30% in 2023[43]. Banking Operations - Total loans at American Savings Bank were 6.1 billion as of September 30, 2024, down 2.3% from December 31, 2023[16]. - The bank's net interest margin expanded to 2.82%, an increase of 3 basis points compared to Q2 2024[1]. - Total interest and dividend income for the three months ended June 30, 2024, was 87,655,anincreasefrom87,655, an increase from 86,178 in the previous quarter[32]. - Net interest income after provision for credit losses was 61,986,comparedto61,986, compared to 63,594 in the previous quarter[32]. - Noninterest income totaled 17,489forthethreemonthsendedJune30,2024,upfrom17,489 for the three months ended June 30, 2024, up from 15,765 in the previous quarter[32]. - Total noninterest expense decreased to 56,046from56,046 from 136,465 in the previous quarter, primarily due to a significant goodwill impairment in the prior period[32]. - Net income for the three months ended June 30, 2024, was 18,778,arecoveryfromalossof18,778, a recovery from a loss of 45,787 in the previous quarter[32]. - Return on average assets improved to 0.81% from (1.97%) in the previous quarter[32]. - Return on average equity increased to 14.28% from (33.97%) in the previous quarter[32]. Management Outlook - HEI's management expressed confidence that the recent settlement agreements represent the best outcome for the company and the community[4].