Q1 2024 Hawaiian Electric Industries Inc Earnings Call Transcript
Key Points
- Hawaiian Electric Industries Inc (HE) is actively engaged in recovery efforts from the Maui wildfires, including collaboration with government initiatives like the One 'Ohana fund.
- The utility has received approval for a $190 million grid resilience plan, which includes federal funding, to enhance wildfire mitigation and resilience.
- American Savings Bank (ASB) showed improved profitability due to strategic balance sheet repositioning, leading to a decrease in cost of funds and expansion of net interest margin.
- HEI reported a healthy consolidated core Return on Equity (ROE) of 9.5%, excluding wildfire impacts.
- The utility is pursuing additional federal funding for projects focused on grid resilience and modernization, totaling approximately $900 million.
- HEI and Hawaiian Electric Company face approximately 400 lawsuits related to the Maui wildfires, with significant legal and financial uncertainties.
- The utility's net income decreased due to higher Operations and Maintenance (O&M) expenses driven by increased wildfire mitigation costs.
- Legislation critical for wildfire risk reduction and financial stability did not pass in the recent legislative session, delaying potential benefits.
- There are ongoing challenges with the ATF investigation into the Maui wildfires, with potential implications for the company depending on the findings.
- The utility's capital expenditure for 2024 is heavily weighted towards wildfire mitigation, which may limit the availability of funds for other projects.
Good day. My name is Briana, and I will be your conference operator. At this time, I would like to welcome everyone to the Hawaiian Electric Industries, Inc. First Quarter 2024 Earnings Conference Call.
Please note that this call is being recorded. (Operator Instructions)
I will now turn today's call over to Mateo Garcia, Director of Investor Relations. Please go ahead.
Thank you. Welcome, everyone, to HEI's First Quarter 2024 Earnings Call. Joining me today are Scott Seu, HEI 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
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