Hawaiian Electric Industries (HE) Q4 2023 earnings summary

Executive summary

• FY2023 consolidated net income was $199.2M and diluted EPS was $1.81, down from $241.1M and $2.20 in 2022; core net income was $224.3M and core diluted EPS was $2.04.

• Core utility and bank operations were resilient; Maui wildfire costs and ASB’s securities-sale loss weighed on reported earnings.

Financial highlights

• FY2023 revenue was $3.682B vs. $3.742B in 2022; Q4 net income was $48.8M and diluted EPS was $0.44 vs. $57.3M and $0.52.

• FY2023 included $14.1M of after-tax wildfire costs and an $11.0M after-tax loss on ASB’s securities sale.

• Adjusted O&M excluding pension was $463.8M for FY2023 vs. $427.8M in 2022; Q4 was $107.9M vs. $109.2M.

Outlook and guidance

• Stage 3 RFP negotiations continued for 16 renewable projects: ~517 MW variable generation, 694 MW firm generation and 2.1 GWh of storage.

• Full advanced-metering infrastructure deployment was targeted for 3Q24; utility priorities included West Maui restoration, wildfire mitigation and grid modernization.

• The $175M Maui Recovery Fund targeted a March 1 launch, with its next phase intended to support property owners and businesses.

• ASB expected its securities repositioning to support improved net interest margin and profitability by replacing low-yielding assets and reducing high-cost funding.