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HEI reports 2Q16 earnings

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LNG Industry,

Hawaiian Electric Industries (HEI) has released its earnings for 2Q16, reporting consolidated net income for common stock of US$44.1 million and diluted earnings per share (EPS) of US$0.41. This is compared to 2Q15, when HEI reported consolidated net income of US$35 million and EPS of US$0.33. Not including costs linked to the merger that was recently terminated with NextEra Energy Inc., the cancelled spin-off of ASB Hawaii Inc. and the recently terminated LNG contract, which totalled US$2.7 million after tax in 2Q16, and US$7.2 million after tax in 2Q15, core earnings and core EPS for 2Q16 were US$46.9 million and US$0.43, respectively. This is compared to US$42 million and US$0.39, respectively, for 2Q15.

Constance H. Lau, HEI president and CEO and Chairman of the boards of Hawaiian Electric and American Savings Bank, said: "HEI had a solid quarter as we continued to invest in our Hawaii-based businesses. Through the first half of the year, Hawaiian Electric invested US$157 million (more than twice its earnings for the first half of the year) in local infrastructure projects to modernise the electric grid and to integrate more renewable energy reliably. At American Savings Bank, we continued to deliver profitable performance with year-to-date annualised loan growth of 6.0% and deposit growth of 8.2% driving higher net interest income."

"HEI remains a strong company and is well-positioned to help Hawaiian Electric achieve Hawaii's 100% renewable energy goal by 2045. Our utilities will continue transforming to focus on providing customer value and options. We will accomplish this through innovation and a balanced generation portfolio, distributed generation, enhanced electrification of transportation and demand response initiatives. And American Savings Bank will continue to move forward as one of the leading financial institutions in Hawaii delivering a full range of financial products and services to its customers."

Hawaiian Electric Company reported a net income in 2Q16 of US$35.9 million. This is compared to US$32.8 million that was made in 2Q15. The increase in net income was reportedly largely due to US$4 million (after tax) higher net revenues, primarily due to the recovery of costs for clean energy and reliability investments partially offset by US$2 million (after-tax) higher depreciation expense as a result of increasing investments for improved customer reliability and greater efficiency, and the integration of more renewable energy.

The company claims that, relatively speaking, other operations and maintenance expenses were flat when compared to 2Q15. 2Q16 included higher overhaul and LNG consulting and legal expenses compared to 2Q15, which included higher vegetation management and boiler and steam maintenance expenses.

Edited from press release by David Rowlands

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