HEI earn­ings down in the fourth quar­ter

Honolulu Star-Advertiser - - BUSINESS - By Dave Se­gal dse­gal@starad­ver­tiser.com

Hawai­ian Elec­tric In­dus­tries Inc. topped an­a­lysts’ es­ti­mates in the fourth quar­ter de­spite lower net in­come and said a record 27 per­cent of elec­tric­ity on its util­ity’s grid was from re­new­able sources last year.

The par­ent of the state’s dom­i­nant util­ity and Amer­i­can Sav­ings Bank pro­vided the re­new­able en­ergy up­date Wed­nes­day in con­junc­tion with its fourth-quar­ter and full-year fi­nan­cial re­port that was af­fected by one-time items tied to fed­eral tax re­form and the com­pany’s failed 2016 sale to Nex­tEra En­ergy Inc.

HEI Chief Ex­ec­u­tive Con­nie Lau said Hawai­ian Elec­tric Co. con­tin­ues to move to­ward the state’s goal of 100 per­cent re­new­able en­ergy by 2045.

“We in­vested over

$400 mil­lion (more than three times the util­ity’s earn­ings) to mod­ern­ize and strengthen the elec­tric sys­tems on Oahu, Maui, Hawaii is­land, Molokai and Lanai,” she said.

HEI said fourth-quar­ter earn­ings fell 27.5 per­cent to $32.4 mil­lion, or 30 cents a share, from $44.6 mil­lion, or 41 cents a share, in the year-ear­lier quar­ter. Last quar­ter’s re­sults in­cluded a $14.2 mil­lion ex­pense tied to the Tax Cuts and Jobs

Act signed into law in De­cem­ber and $1,000 cash bonuses paid to all Amer­i­can Sav­ings em­ploy­ees ex­cept the se­nior man­age­ment team. Core earn­ings that ex­clude the one-time items were 43 cents a share — 2 cents above an­a­lysts’ es­ti­mates. Rev­enue rose

6.7 per­cent to $658.6 mil­lion from $617.4 mil­lion.

For the year, HEI’s earn­ings fell 33.4 per­cent to $165.3 mil­lion from

$248.3 mil­lion in 2016, when HEI re­ceived $58.2 mil­lion af­ter taxes from Nex­tEra as part of a breakup fee and the related can­cel­la­tion of a liq­ue­fied nat­u­ral gas con­tract. Ex­clud­ing the im­pact of those items, HEI’s core net in­come was $179.5 mil­lion in 2017 com­pared to $190.1 mil­lion in 2016. Rev­enue rose 7.8 per­cent to

$2.26 bil­lion from $2.09 bil­lion.

The util­ity’s earn­ings for 2017 fell to $120 mil­lion from $142.3 mil­lion in 2016 while Amer­i­can Sav­ings’ net in­come rose to $67 mil­lion from $57.3 mil­lion in the pre­vi­ous year.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.