Hawaiian Electric Industries Inc (HE, Financial) released its 8-K filing on February 13, 2024, disclosing its financial performance for the year ended December 31, 2023. The company, which is the parent of three Hawaii-based regulated utilities and Hawaii's American Savings Bank, faced a challenging year with net income declining to $199.2 million from $241.1 million in 2022. The utilities, serving the five islands of Oahu, Hawaii, Maui, Molokai, and Lanai, are rapidly transitioning towards renewable energy, with a state goal of 100% by 2045.
The year's results were impacted by $14.1 million of after-tax wildfire-related expenses and an $11.0 million after-tax loss due to ASB's balance sheet repositioning in the fourth quarter. Despite these challenges, the core businesses continued to perform well, with the utility making progress on resilience work in West Maui and ASB strengthening its balance sheet for future profitability.
Hawaiian Electric's full-year net income was $194.0 million, an increase from $188.9 million in 2022, primarily due to higher revenues and other positive factors. However, this was offset by higher operations and maintenance expenses, increased interest expense, and higher depreciation expense related to investments in renewable energy and system efficiency.
ASB's full-year net income was $53.4 million, down from $80.0 million in 2022. The bank's balance sheet repositioning, aimed at improving profitability, resulted in a loss on the sale of investment securities. Nevertheless, ASB maintained strong capital and excellent credit quality.
The holding and other companies reported a net loss of $48.1 million in 2023, compared to $27.8 million in 2022, primarily due to wildfire-related expenses and other factors.
In summary, Hawaiian Electric Industries faced significant challenges in 2023, including natural disasters and strategic financial maneuvers. However, the company's core business strength and strategic initiatives position it for resilience and future growth. Investors and stakeholders are encouraged to review the detailed financial statements and management's discussion for a comprehensive understanding of the company's performance.
For further details and to access the full earnings report, please visit the SEC website or HEI's website at www.hei.com under the "Investor Relations" section.
Explore the complete 8-K earnings release (here) from Hawaiian Electric Industries Inc for further details.
