Q2 2024 Hawaiian Electric Industries Inc Earnings Call Transcript
Key Points
- Hawaiian Electric Industries Inc (HE) reached a settlement agreement in principle to offer those who suffered loss from the Maui wildfires an accelerated path to recovery.
- The settlement provides a clearer line of sight toward resolution of the wildfire-related tort litigation and increased certainty for the company's path ahead.
- The utility is implementing enhanced wildfire operational strategies and practices, including a Public Safety Power Shutoff program (PSPS) to mitigate risks.
- Hawaiian Electric is advancing a broader program of wildfire mitigation work, dedicating nearly $120 million of its capital budget to these efforts.
- American Savings Bank (ASB) improved profitability and grew net income in the second quarter compared to last year, showing strong core operations and earnings.
- Hawaiian Electric Industries Inc (HE) recorded a $1.71 billion pretax loss for the quarter due to the proposed settlement, resulting in a consolidated net loss of $1.3 billion.
- The proposed settlement is still an agreement in principle and requires resolution of claims from insurance companies, which adds uncertainty.
- The utility's dividend to HEI has been suspended due to the going concern assessment related to the financing plan for the settlement payments.
- Higher O&M and wildfire mitigation expenses led to lower utility core net income compared to the same quarter last year.
- The company disclosed a substantial doubt regarding its ability to continue as a going concern until the financing plan for the settlement is sufficiently progressed.
I will be your conference operator today. At this time, I'd like to welcome everyone to the Q2 2024 Hawaiian Electric Industries Inc earnings conference call. Today's conference is being recorded. (Operator Instructions)
At this time, I would like to turn the conference over to Mateo Garcia, Director, Investor Relations. Please go ahead.
Thank you. Welcome, everyone to HEI's second quarter 2024 earnings call. Joining me today are Scott Seu HEI's President and CEO; Scott DeGhetto, HEI Executive Vice President, CFO and Treasurer; Shelee Kimura, Hawaiian Electric President and CEO; Ann Teranishi, American Savings Bank, President and CEO, and other members of senior management.
Our earnings release and our presentation for this call are available in the Investor Relations section of our website. As a reminder, forward-looking statements will be made on today's call. Factors that could cause actual results to differ materially from expectations can be found in our
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
