Hawaiian Electric keeps profit up, seeks financing as Maui wildfire costs loom
Hawaii’s largest electrical utility is maintaining financial stability in the face of still-growing legal claims and recovery expenses from the Aug. 8 Maui wildfire disaster. Hawaiian Electric on Tuesday reported fourth-quarter and full-year net income in 2023 topping figures in 2022, which helped its parent company achieve strong but reduced profit in the same comparable periods.
Profit for the utility company, which serves Oahu, Maui, Molokai, Lanai and Hawaii Island, totaled $58.2 million in the October-December quarter, up 20% from $48.6 million in the same quarter a year earlier.
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Full-year profit for Hawaiian Electric ticked up 3% to $194 million in 2023 from $188.9 million a year earlier.
Parent company Hawaiian Electric Industries Inc. reported earning $48.8 million in the fourth quarter, down 15% from $57.3 million a year earlier, which contributed to a 2023 profit of $199.2 million that was down 17% from $241.1 million in 2022.
HEI’s net income for both periods in 2023 would have been higher were it not for sharp drops in profit from its American Savings Bank subsidiary.
“Our core businesses delivered solid results under challenging circumstances,” Scott Seu, HEI president and CEO, said in the financial report.
“Although 2023 was one of the most challenging years ever for our company and the communities we serve, I am encouraged by the collaborative efforts of so many in our state to prioritize Maui’s recovery following the devastating August wildfires,” Seu said. “Our hearts continue to be with the people of Maui, and we remain committed to supporting the recovery and rebuild effort. … The utility is continuing to execute on its plans to modernize its generation system and make our electric grids more resilient.”
The 2023 financial results for Hawaiian Electric excluded $10.9 million in Maui wildfire recovery expenses that were deferred for accounting purposes, and the company faces future costs for wildfire mitigation.
