HEI reports lower Q3 profit

By Howard Dicus - bio | email

HONOLULU (HawaiiNewsNow) - Hawaiian Electric Industries Inc., owner of three electric companies and American Savings Bank, has posted a $32 million third quarter profit, down $1 million from the same period last year.

CEO Connie Lau attributed lower electric company profits over the summer to "weather-driven declines in utility sales" offset by cost efficiencies. HEI owns Hawaiian Electric Co., Maui Electric Co., and the Big Island's Hawaii Electric Light Co.

The third quarter at a glance (year ago performance in parenthesis):

  • Revenue: $695 million ($620 million).
  • Net income: $32.4 million ($33.5 million).
  • Per share: 35 cents (37 cents).

Kilowatthour sales were 2.9% below year-before levels on cooler temperatures. The power companies had higher maintenance expenses and financing costs but these were offset by higher electric rates on Oahu and Maui.

At American Savings Bank, Lau cited "meaningful improvements" to profitability and cost structure, leading to a 1.26% return on assets and a 54% efficiency ratio. Bank net income was $15.3 million, up from $11.3 million a year ago, even though regulation of overdraft fees provided a downdraft on bank income.

While other local banks have felt able to reduce their provision for loan loans, ASB raised its cushion to $6 million; in the same quarter of 2009 it was $5.2 million. Actual loan charge-offs, however, were down from year-before levels.

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