HEI’s Quarterly Revenue Exceeds $1 Billion Due to Higher Fuel Prices and Bank Lending

NOVEMBER 8 — Hawaiian Electric Industries Inc. surpassed $1 billion in quarterly revenue for the first time on the back of rising prices utility companies are paying for fuel oil and strong financing growth from its subsidiary American Savings Bank. rice field.

Hawaiian Electric Industries surpassed $1 billion in quarterly revenue for the first time on the back of rising prices utility companies are paying for fuel oil and strong financing growth from its American Savings Bank subsidiary.

Sales increased 37.7% to $1.04 billion from $756.9 million in the same period last year, the holding company said on Monday. This was HEI’s largest quarterly earnings since his third quarter of 2008, when he posted $915.4 million in earnings.

Utilities accounted for the majority of that profit with revenues of $956 million, up 40.7% from $679.5 million a year ago. Oil prices, which drove fuel costs for utilities, more than doubled to $383 million in the third quarter from $180 million a year ago. Customers are paying more bills, mainly because the cost of oil and purchased power is rising.

HEI, the parent company of the state’s largest utility, reported third-quarter net earnings per common share of $62.1 million, or 57 cents per share. That beat analyst consensus expectations of 55 cents a share for him. However, revenue was down 2.1% from $63.4 million, or 58 cents per share, in the year-ago quarter.

Scott Seu, president and CEO of HEI, said the earnings reflected good performance and the benefits of consolidating the companies.

“Utilities performance was stable and was able to offset some of the pressures we saw related to inflation, interest rates, O&M (operations and maintenance) and fuel costs,” Seu said with analysts. “Our outlook for utilities this year has improved since our last webcast. We expect utilities to be closer to the midpoint of our guidance range than the lower end we projected last quarter. ”

Seu said HEI’s move to clean energy is “one of the most powerful ways to reduce fuel price spikes, stabilize customer bills and reduce greenhouse gas emissions while maintaining a healthy utility.” It’s one,” he said.

He said HEI continues to move forward on all fronts to bring new utility-scale renewable power generation at contract prices below the current cost of oil.

The state’s largest solar plus storage project went live on July 31 and is now producing energy at less than half the cost of oil, according to HEI. Additionally, he said three Solar Plus storage projects are slated to begin in early 2023, with several others he expects to begin in 2024. A large battery project will also be operational on Oahu by mid-2023.

“We have over 400 megawatts of renewable capacity and over 2 gigawatt hours of battery storage approved and active under stage 1 and 2 RFPs (requests for proposals), and more. We continue to seek,” said Seu. “Today (Monday), we are submitting the final draft of the Stage 3 RFP for the Big Island of Hawaii. If accepted by the PUC, we aim to start by the end of the year.”

According to HEI, rooftop solar continues to grow, with strong interest in the battery bonus program, which received 1,400 applications totaling 10.9 megawatts in September alone.

Last month, the state’s Public Works Board launched a new utility bill designed to encourage customers to cut power during peak times when energy costs are high and shift loads to times when cheaper renewable resources are plentiful. Issued an order leading to a fee structure.

Net income for HEI’s Utilities segment, which covers Oahu, Maui County and the Big Island of Hawaii, decreased 1% in the fourth quarter to $49.8 million from $50.3 million a year ago.

American Savings, the third-largest bank in the state, posted a 7.7% increase in net income in the third quarter on double-digit lending growth.

The bank reported on October 28 that loans increased 11% year-on-year to $5.69 billion, up 19.2% on an annualized basis from the April-June period.

American Savings net income increased to $20.8 million from $19.3 million a year ago. Bank profits increased by 18.8% from the last three months.

“The bank had another strong quarter and continued to show strength in a rising interest rate environment,” Su said. “Banks’ performance has benefited from rising interest rates, strong loan growth and continued favorable credit trends.”

With positive trends expected to continue for the rest of the year, Seu said he raised the bank’s 2022 guidance to a range of 72 cents per share to 76 cents per share, and HEI’s consolidated EPS guidance range. $2.08 to $2.20 per year, said to push up 8 cents into the new renewal range.

On Thursday, HEI said it would maintain its quarterly dividend at 35 cents per share. He will be paid out on December 9 to shareholders of record as of the close of business on November 22.

After the earnings were announced, HEI’s stock fell 54 cents to $37.35.

Third Quarter Net of $62.1 Million Last Year Net of $63.4 Million

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