Dive Brief:
- Hawaiian Electric Industries (HEI) Q3 2014 profit was $47.8 million, and $0.46 per share, down from Q3 2013’s profit of $48.2 million, and $0.48 per share. Q3 2014 revenue was $8 million higher than Q3 2013 revenue as the result of a $7 million gain in cost recovery for infrastructure investments and a $1 million gain in fuel efficiency performance.
- The total profit improvement was limited to $1.1 million by the third quarter's $2 million increase in operations and maintenance (O&M) expenses, $2 million increase in depreciation expenses, and a Q3 2013 $3 million income tax benefit.
- The O&M expenses included costs for regulatory filings, storm restoration, and smart grid installation. Depreciation was applied to renewables integration and system efficiency and reliability investments.
Dive Insight:
HEI’s Q3 2014 dividend was $0.31 per share, equivalent to an annual rate of return of $1.24 per share. At that dividend rate and the current share price of $28.12, HEI's yield is approximately 4.41%.
HEI is made up of utility subsidiaries Hawaiian Electric Company (HECO), Maui Electric Company, and Hawaii Electric Light Company. HECO’s Q3 2014 profit was $38.9 million, up from Q3 2013’s $37.8 million.
HECO made national headlines in Q3 when it filed a revised integrated resource plan with state regulators calling for it to get 67% of its power from renewables by 2030.
HEI subsidiary American Savings Bank's Q3 2014 profit was $13.3 million, down from Q3 2013’s $15.3 million. It increased its loans by 5.9% and paid a $9 million dividend to the parent company.
"The recent energy plans we filed with the PUC are providing the starting point to launch important initiatives,” said President/CEO Constance H. Lau, “to achieve our shared vision for Hawaii's clean energy future."
