HEI Reports Second Quarter 2017 Earnings

HONOLULU, Aug. 3, 2017

"Our utilities continue to bring more renewable resources online, strengthen our energy delivery networks to make them more reliable and resilient and promote sustainable communities.  We are encouraged by our regulators' acceptance of our Power Supply Improvement Plan, which describes the near-term steps to move Hawaii closer to its 100 percent renewable energy goal.  At American Savings Bank, we continued to deliver strong performance through the second quarter with higher returns from improving credit quality, higher yields and greater efficiency while maintaining healthy capital levels," said Constance H. Lau, HEI president and chief executive officer.

HAWAIIAN ELECTRIC COMPANY EARNINGS
Hawaiian Electric Company's² net income for the second quarter of 2017 was $25.6 million compared to $35.9 million in the second quarter of 2016.  Core earnings¹ were $25.6 million and $36.6 million in the second quarters of 2017 and 2016, respectively.  The $11.0 million core net income decrease from the prior year quarter was primarily driven by the following after-tax items:

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Note:  Amounts indicated as "after-tax" in this earnings release are based upon adjusting items for the composite statutory tax rates of 39% for the utilities and 40% for the bank.
1	Non-GAAP measure that excludes after-tax income and costs related to the terminated merger with NextEra Energy, Inc., the cancelled spin-off of ASB Hawaii, Inc., and the termination of the liquefied natural gas (LNG) contract which required PUC approval of the merger with NextEra Energy, Inc. (the "Transaction Adjustments").  See the "Explanation of HEI's Use of Certain Unaudited Non-GAAP measures" and the related reconciliation. ARIVA.DE Börsen-Geflüster Kurse Hawaiian Electric Industries 10,50 $ 0,00%
2	Hawaiian Electric Company refers to the three utilities, Hawaiian Electric Company, Inc. on Oahu, Maui Electric Company, Limited, and Hawaii Electric Light Company, Inc.

• $5 million lower net revenues³ mainly due to the expiration of the Hawaii Public Utilities Commission-approved 2013 settlement agreement with the Consumer Advocate that had allowed Hawaiian Electric Company, Inc. to record calendar year rate adjustment mechanism revenues from January 1, 2014 – December 31, 2016⁴;
• $5 million higher operations and maintenance expenses⁵ compared to the prior year quarter primarily due to higher overhaul expenses due to timing, increased maintenance costs, enterprise resource planning costs, partial write-off of deferred geothermal RFP costs, higher property damage reserve for a customer claim and grid modernization consulting costs; and
• $1 million higher depreciation expense as a result of increasing investments for the integration of more renewable energy and improved customer reliability.

AMERICAN SAVINGS BANK EARNINGS
American Savings Bank's (American) net income for the second quarter of 2017 was $16.7 million compared to $15.8 million in the first (or linked) quarter of 2017 and $13.3 million in the second quarter of 2016. 

Compared to the second quarter of 2016, the $3.4 million increase was primarily driven by $3 million (after-tax) higher net interest income mainly due to growth in the commercial real estate and consumer loan portfolios as well as the deployment of deposit growth into our investment portfolio. 

The $1 million (after-tax) lower provision for loan losses was offset by $1 million (after-tax) higher non-interest expense.

Compared to the linked first quarter of 2017, the $0.9 million increase was primarily driven by the following on an after-tax basis:

• $1 million higher net interest income driven mainly by higher loan portfolio yields and growth in our consumer loan and investment portfolios;
• $1 million lower provision for loan losses; and
• $1 million higher noninterest income mainly due to improved performance from bank-owned life insurance investments.

These increases were offset by $2 million (after-tax) higher noninterest expense primarily due to higher compensation and benefit costs.

Total loans were $4.7 billion at June 30, 2017 and included growth in the consumer, home equity line of credit and residential loan portfolios during the second quarter of 2017. 

Total deposits were $5.7 billion at June 30, 2017, an increase of $175 million or 6.3% annualized from December 31, 2016.  Low-cost core deposits increased $143 million or 5.8% annualized from December 31, 2016.  The average cost of funds was 0.21% for the second quarter of 2017 compared to 0.20% for the first quarter of 2017 and 0.23% for the second quarter of 2016.

Overall, American achieved solid profitability in the second quarter of 2017 with a return on average equity of 11.3% and a return on average assets of 1.02%.

For additional information, refer to the American news release issued on July 28, 2017.

HOLDING AND OTHER COMPANIES
The holding and other companies' net losses were $3.7 million in the second quarter of 2017 compared to the $5.0 million net loss in the second quarter of 2016.  Excluding the Transaction Adjustments which totaled $2.0 million in the second quarter of 2016, holding and other companies' net losses were $3.7 million and $3.0 million in the second quarters of 2017 and 2016, respectively. 

WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND EPS GUIDANCE
HEI will conduct a webcast and conference call to discuss its second quarter of 2017 earnings and 2017 EPS guidance on Thursday, August 3, 2017, at 9:00 a.m. Hawaii time (3:00 p.m. Eastern time).

Interested parties within the United States may listen to the conference by calling (844) 834-0652 and international parties may listen to the conference by calling (412) 317-5198 or by accessing the webcast on HEI's website, www.hei.com, under the heading "Investor Relations."  HEI and Hawaiian Electric Company intend to continue to use HEI's website as a means of disclosing additional information.  Such disclosures will be included on HEI's website in the Investor Relations section.  Accordingly, investors should routinely monitor such portions of HEI's website, in addition to following HEI's, Hawaiian Electric Company's and American's press releases, HEI's and Hawaiian Electric Company's Securities and Exchange Commission (SEC) filings and HEI's public conference calls and webcasts. The information on HEI's website is not incorporated by reference in this document or in HEI's and Hawaiian Electric Company's SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at dms.puc.hawaii.gov/dms in order to review documents filed with and issued by the PUC.  No information on the PUC website is incorporated by reference in this document or in HEI's and Hawaiian Electric Company's SEC filings.

An online replay of the webcast will be available at the same website beginning about two hours after the event. Replays of the conference call will also be available approximately two hours after the event through August 17, 2017, by dialing (877) 344-7529 or (412) 317-0088 and entering passcode: 10108918.

HEI supplies power to approximately 95% of Hawaii's population through its electric utilities, Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited and provides a wide array of banking and other financial services to consumers and businesses through American Savings Bank, F.S.B., one of Hawaii's largest financial institutions.

NON-GAAP MEASURES
See "Explanation of HEI's Use of Certain Unaudited Non-GAAP Measures" and related reconciliations on pages 12 to 13 of this release.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
		Three months ended June 30								Six months ended June 30
(in thousands, except per share amounts)		2017				2016				2017				2016
Revenues
Electric utility		$	556,875			$	495,395			$	1,075,486			$	977,447
Bank		75,329				70,749				148,185				139,589
Other		77				100				172				168
Total revenues		632,281				566,244				1,223,843				1,117,204
Expenses
Electric utility		501,828				424,709				971,501				851,435
Bank		50,533				50,525				99,229				99,771
Other		4,024				5,555				9,355				11,692
Total expenses		556,385				480,789				1,080,085				962,898
Operating income (loss)
Electric utility		55,047				70,686				103,985				126,012
Bank		24,796				20,224				48,956				39,818 Werbung Mehr Nachrichten zur Hawaiian Electric Industries Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 25.04.24 - PR Newswire Norges Bank - Form 8.3 - BHP Group Limited 25.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Wincanton Plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59