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Hawaiian Electric Industries (HE) 8 Nov 24 2024 Q3 Earnings call transcript

AInvestFriday, Nov 8, 2024 9:11 pm ET
1min read

In the third quarter of 2024, Hawaiian Electric Industries, Inc. (HEI) held an earnings call to discuss their performance and strategic updates. The call was led by Mateo Garcia, Director of Investor Relations, alongside key executives, including Scott Seu, President and CEO, Scott DeGhetto, CFO and Treasurer, Shelee Kimura, Hawaiian Electric President and CEO, Ann Teranishi, American Savings Bank President and CEO, and other senior management members.

Maui Wildfires and Settlement Agreement

The call began with an update on the Maui wildfires and the definitive settlement agreement signed earlier this week. The agreement, valued at $1.99 billion pretax, represents a significant milestone in the company's efforts to resolve the wildfire-related tort litigation and restore financial stability. The settlement is expected to be paid in four equal annual installments, with the first payment anticipated in late 2025.

Operational Updates and Financial Performance

Scott Seu provided updates on the utility's operational progress in addressing wildfire risks, including the successful implementation of the public safety power shutoff program and advancements in grid hardening. The bank's core operations and earnings remained strong, demonstrating a healthy balance sheet and net interest margin expansion. Scott DeGhetto discussed the financial implications of recent announcements, including the wildfire-related expenses and asset impairment charge for Pacific Current.

Strategic Review of Pacific Current

HEI is currently conducting a strategic review of Pacific Current, with no definitive timeline or assurance of any actions resulting from the evaluation. This review is part of a larger effort to ensure a financially healthy enterprise for Hawaii's future.

Earnings Call Takeaways

The call provided valuable insights into Hawaiian Electric Industries' operational progress, financial health, and strategic direction. The successful resolution of the Maui wildfire tort litigation is a crucial step towards restoring financial stability. The ongoing strategic review of Pacific Current and the bank's solid performance underscore HEI's commitment to a sustainable future for Hawaii.

Looking Ahead

As HEI moves forward, investors and stakeholders will be closely watching the progress of the strategic review of Pacific Current and the utility's ongoing efforts to mitigate wildfire risks. The company's focus on financial health and sustainable growth is a promising sign for its future prospects.

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