PR Newswire
HONOLULU, Feb. 14, 2022
HONOLULU, Feb. 14, 2022 /PRNewswire/ --
2021 Highlights:
1 Unless otherwise indicated, throughout this release earnings per share (EPS) refers to diluted earnings per share. |
Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported 2021 year-end consolidated net income for common stock of $246.2 million and EPS of $2.25 compared to $197.8 million and EPS of $1.81 for 2020. For the fourth quarter of 2021, consolidated net income for common stock was $54.5 million and EPS was $0.50 compared to $50.5 million and EPS of $0.46 for the fourth quarter of 2020.
"We're proud of how our HEI companies performed in 2021 — financially, for the customers who rely on us, for our communities and for the long-term health of our state," said Scott Seu, HEI president and CEO. "Solid execution on strategic and operational initiatives in 2021 positioned us well to progress our priorities this year.
"Our utility's focus on cost efficiency enabled us to deliver $8 million in savings to customers in 2021. At year end we dedicated an additional $2 million to provide bill credits for eligible customers in need of support as our state continues its economic recovery. In addition, in 2021 we demonstrated our strong commitment to addressing climate change. We pledged to cut carbon emissions from power generation 70% by 2030, compared to a 2005 baseline, and achieve or exceed carbon neutrality by 2045. And together with our customers we reached one gigawatt of solar capacity on our system, an important milestone toward our goal. We look forward to continuing to work with stakeholders to build on this momentum.
"Our bank's results reflect strong performance by our teammates, solid credit quality, significant improvement in the Hawaii economy and robust earning asset growth. We made major strides in our digital transformation and remain focused on making banking easy anytime and anywhere for our customers," said Seu.
HAWAIIAN ELECTRIC COMPANY EARNINGS2
Full Year Results:
Hawaiian Electric Company's (Hawaiian Electric) full-year net income was $177.6 million, compared to $169.3 million in 2020, with the difference primarily driven by the following after-tax items:
Fourth Quarter Results:
Hawaiian Electric's net income for the fourth quarter of 2021 was $42.0 million, compared to $43.0 million in the fourth quarter of 2020. The decrease in net income compared to the prior year quarter was primarily driven by the following after-tax items: (i) lower revenue from a timing change in target revenue recognition methodology, with target revenues recognized on an annual basis remaining unchanged, (ii) higher other operations and maintenance expense, partially offset by environmental reserves recorded in 2020, (iii) higher depreciation, (iv) lower fuel efficiency due to planned maintenance outages, and (v) higher interest expense. These items were partially offset by higher revenues from PIMs and the RAM and ARA mechanisms, which included the customer dividend and management audit savings delivered to customers.
2 Note: Utility amounts indicated as after-tax in this earnings release are based upon adjusting items using a current year composite statutory tax rate of 25.75%. |
AMERICAN SAVINGS BANK EARNINGS
Full Year Results:
American Savings Bank's (American) full year 2021 net income was $101.2 million compared to $57.6 million in 2020.
Net interest income was $237.2 million compared to $233.5 million in 2020. The increase in net interest income was primarily due to higher average earning assets driven by increased liquidity from continued strong deposit growth, lower cost of funds and higher fee income associated with the Paycheck Protection Program (PPP) loan portfolio. Noninterest income was $64.7 million compared to $78.1 million in 2020. The decrease in noninterest income was primarily due to lower mortgage banking income and lower gains on sales of securities compared to 2020.
Results for 2021 included significant negative provision for credit losses of $25.8 million compared to provision for credit losses of $50.8 million in 2020. The negative provision for credit losses reflects favorable credit trends and significant economic improvement in 2021 compared to the prior year, and a slight shift in loan portfolio composition with growth in the real estate secured portfolio.
Noninterest expense was $197.2 million compared to $191.6 million in 2020. The increase in noninterest expense was primarily due to higher incentive compensation costs, reflecting the bank's strong 2021 performance, and higher data processing expense as the bank upgrades its technology and data capabilities to expand customer relationships, partially offset by lower COVID-19 related expenses.
As of December 31, 2021 and compared to December 31, 2020:
American's return on average equity3 was 13.8% compared to 8.1% in 2020. Return on average assets was 1.15% compared to 0.74% in 2020.
Fourth Quarter Results:
Net income for the fourth quarter of 2021 was $22.1 million, compared to $19.3 million in the third quarter of 2021 and $15.7 million in the fourth quarter of 2020. Results for the fourth quarter of 2021 included a negative provision for credit losses of $3.5 million compared to a provision for credit losses of $11.3 million in the fourth quarter of 2020.
Overall, American's return on average equity3 for the fourth quarter was 12.1%, compared to 10.3% in the linked quarter and 8.6% in the fourth quarter of 2020. Return on average assets was 0.97% for the fourth quarter of 2021, compared to 0.86% in the linked quarter and 0.77% in the fourth quarter of 2020.
Please refer to American's news release issued on January 28, 2022 for additional information on American.
3 Bank return on average equity calculated using daily average common equity. |
HOLDING AND OTHER COMPANIES
The holding and other companies' net loss was $32.7 million in 2021 compared to $29.1 million in 2020. The fourth quarter net loss of $9.6 million was $1.4 million higher than the prior year quarter. The greater net loss compared to the prior year and prior year quarter was primarily due to higher performance incentive compensation.
BOARD INCREASES QUARTERLY DIVIDEND
On February 11, 2022, HEI announced that the Board of Directors increased the quarterly cash dividend to $0.35 per share from $0.34 per share, payable on March 10, 2022 to shareholders of record at the close of business on February 24, 2022 (ex-dividend date is February 23, 2022). This quarterly dividend is equivalent to an annual rate of $1.40 per share. Dividends have been paid on an uninterrupted basis since 1901. At the indicated annual dividend rate and based on the closing price per share on February 11, 2022 of $41.29, HEI's dividend yield is 3.4%.
WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND 2022 GUIDANCE
HEI will conduct a webcast and conference call to review its consolidated results and 2022 earnings guidance and outlook on Monday, February 14, 2022 at 11:15 a.m. Hawaii time (4:15 p.m. Eastern).
To listen to the conference call, dial 1-844-200-6205 (U.S.) or 1-929-526-1599 (international) and enter passcode 718780. Parties may also access presentation materials and/or listen to the conference call by visiting the conference call link on HEI's website at www.hei.com under "Investor Relations," sub-heading "News and Events — Events and Presentations."
A replay will be available online and via phone. The online replay will be available on HEI's website about two hours after the event. An audio replay will also be available about two hours after the event through February 28, 2022. To access the audio replay, dial 1-866-813-9403 (U.S.) or 44-204-525-0658 (international) and enter passcode 312244.
HEI and Hawaiian Electric intend to continue to use HEI's website, www.hei.com, as a means of disclosing additional information; such disclosures will be included in the Investor Relations section of the website. Accordingly, investors should routinely monitor the Investor Relations section of HEI's website, in addition to following HEI's, Hawaiian Electric's and American's press releases, HEI's and Hawaiian Electric's Securities and Exchange Commission (SEC) filings and HEI's public conference calls and webcasts. Investors may sign up to receive e-mail alerts via the "Investor Relations" section of the website. The information on HEI's website is not incorporated by reference into this document or into HEI's and Hawaiian Electric'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 to review documents filed with, and issued by, the PUC. No information on the PUC website is incorporated by reference into this document or into HEI's and Hawaiian Electric's SEC filings.
ABOUT HEI
The HEI family of companies provides the energy and financial services that empower much of the economic and community activity of Hawaii. HEI's electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawaii's population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy. Its banking subsidiary, American Savings Bank, is one of Hawaii's largest financial institutions, providing a wide array of banking and other financial services and working to advance economic growth, affordability and financial fitness. HEI also helps advance Hawaii's sustainability goals through investments by its non-regulated subsidiary, Pacific Current. For more information, visit www.hei.com.
FORWARD-LOOKING STATEMENTS
This release may contain "forward-looking statements," which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as "will," "expects," "anticipates," "intends," "plans," "believes," "predicts," "estimates" or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic, political and market factors, among other things. These forward-looking statements are not guarantees of future performance.
Forward-looking statements in this release should be read in conjunction with the "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" discussions (which are incorporated by reference herein) set forth in HEI's Annual Report on Form 10-K for the year ended December 31, 2020 and HEI's other periodic reports that discuss important factors that could cause HEI's results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric, American and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries | ||||||||
CONSOLIDATED STATEMENTS OF INCOME DATA | ||||||||
(Unaudited) | ||||||||
| ||||||||
| | Three months ended | | Years ended December 31 | ||||
(in thousands, except per share amounts) | | 2021 | | 2020 | | 2021 | | 2020 |
Revenues | | | | | | | | |
Electric utility | | $ 693,394 | | $ 571,095 | | $ 2,539,636 | | $ 2,265,320 |
Bank | | 75,799 | | 80,415 | | 306,398 | | 313,511 |
Other | | 1,079 | | 707 | | 4,345 | | 944 |
Total revenues | | 770,272 | | 652,217 | | 2,850,379 | | 2,579,775 |
Expenses | | | | | | | | |
Electric utility | | 625,826 | | 502,822 | | 2,260,078 | | 1,996,770 |
Bank | | 47,755 | | 62,002 | | 178,195 | | 251,702 |
Other | | 7,828 | | 6,719 | | 26,040 | | 19,810 |
Total expenses | | 681,409 | | 571,543 | | 2,464,313 | | 2,268,282 |
Operating income (loss) | | | | | | | | |
Electric utility 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 |