Welcome to our dedicated page for Hawaiian Elec Industries news (Ticker: HE), a resource for investors and traders seeking the latest updates and insights on Hawaiian Elec Industries stock.
Hawaiian Electric Industries, Inc. (HE) is a diversified holding company primarily operating in the regulated utility sector and financial services. Headquartered in Hawaii, the company plays a pivotal role in powering the state's economy and communities by supplying electricity to nearly 95% of Hawaii's population through its subsidiaries: Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc., and Maui Electric Company, Limited. These utilities collectively serve the islands of Oahu, Hawaii, Maui, Molokai, and Lanai, making Hawaiian Electric Industries the largest electricity provider in the state.
Core Business: Regulated Utilities
At the heart of Hawaiian Electric Industries' operations is its regulated utility business, which encompasses power generation, transmission, and distribution. Operating within a regulated framework, the company works closely with the Hawaii Public Utilities Commission to establish electricity rates that balance affordability for consumers with the need to maintain and upgrade infrastructure. This regulatory oversight ensures stable and predictable revenue streams while requiring the company to meet stringent performance and sustainability standards.
Hawaii's unique geography and commitment to renewable energy transformation present both challenges and opportunities for Hawaiian Electric Industries. The state's reliance on imported fossil fuels for energy generation has historically driven higher electricity costs, but the company has been actively working to integrate renewable energy sources such as solar, wind, and geothermal into its grid. This aligns with Hawaii's ambitious goal of achieving 100% renewable energy by 2045, positioning Hawaiian Electric Industries as a key player in the state's energy transition.
Diversification: Financial Services
In addition to its utility operations, Hawaiian Electric Industries owns a 10% minority interest in American Savings Bank, one of Hawaii's largest financial institutions. This strategic diversification provides the company with an additional revenue stream outside of its core energy business. American Savings Bank offers retail and commercial banking services, contributing to the economic stability of the local community. While the financial segment represents a smaller portion of the company's overall portfolio, it underscores Hawaiian Electric Industries' commitment to supporting Hawaii's economic growth beyond the energy sector.
Market Position and Competitive Landscape
Hawaiian Electric Industries operates in a geographically concentrated and highly regulated market, giving it a near-monopoly status in Hawaii's electricity sector. This dominant position is both a strength and a responsibility, as the company must continuously adapt to evolving energy policies, technological advancements, and consumer expectations. Competitors in the broader energy landscape include renewable energy providers and emerging technologies such as battery storage and distributed energy resources.
The company's ability to navigate these challenges while maintaining reliable service and advancing renewable energy integration highlights its strategic importance in Hawaii's economy. By leveraging its extensive infrastructure and expertise, Hawaiian Electric Industries remains a cornerstone of the state's energy and financial ecosystems.
Conclusion
Hawaiian Electric Industries, Inc. exemplifies a unique blend of traditional utility operations and forward-looking energy innovation, coupled with a stable presence in financial services. Its dual focus on maintaining reliable electricity supply and supporting Hawaii's renewable energy goals positions the company as a critical enabler of the state's sustainable future. Through its regulated utilities and minority stake in American Savings Bank, Hawaiian Electric Industries continues to play a vital role in shaping Hawaii's economic and environmental landscape.
On February 10, 2023, Hawaiian Electric Industries, Inc. (HEI, NYSE:HE) announced an increase in its quarterly cash dividend from $0.35 to $0.36 per share, payable on March 10, 2023. Shareholders of record by the end of business on February 23, 2023 will receive the dividend, which reflects an annual rate of $1.44 per share and a dividend yield of 3.4% based on the closing share price of $42.41 on the announcement date. Dividends have been consistently paid since 1901.
American Savings Bank (ASB), a subsidiary of Hawaiian Electric Industries (HE), reported a net income of $80 million for 2022, a decline from $101.2 million in 2021. Strong loan growth of 15% contributed to a net interest income increase of 6.5%, reaching $252.6 million. The net charge-off ratio improved to 0.03%, the lowest since 2014, while the provision for credit losses was significantly lower at $2 million compared to a negative $25.8 million in 2021. However, noninterest income fell to $57 million, down from $64.7 million in 2021. Overall, ASB maintains a robust capital position and a Tier 1 leverage ratio of 7.78%.
Hawaiian Electric Industries, Inc. (HE) is set to release its fourth quarter and full year 2022 financial results on February 14. Concurrently, its subsidiary, American Savings Bank (ASB), will announce its results on January 30. A live webcast and conference call will occur on February 14 at 11:15 a.m. Hawaii time, discussing consolidated earnings and 2023 guidance. Access to the call is available via phone or HEI's website. A replay will be offered online and by phone until February 28. HEI and Hawaiian Electric Company aim to use their website for ongoing investor updates.
On January 3, 2023, Hawaiian Electric Industries (NYSE: HE) announced the appointment of Paul K. Ito as the new executive vice president and chief financial officer (CFO), effective January 1, 2023. Ito has served as interim CFO since July 2022 and has been with HEI since 2018, previously overseeing various financial functions. His promotion follows a national search by HEI's leadership. Ito’s leadership is anticipated to enhance financial management and support the company’s mission to improve Hawai’i. He holds degrees from the University of Hawai'i and the University of Texas in Austin.
Hawaiian Electric Industries, Inc. (NYSE: HE) announces key board appointments effective January 1, 2023. Yoko Otani joins the HEI and American Savings Bank boards, bringing extensive finance and risk management experience. Currently a partner at Straterix, Otani previously worked at Citibank and Promontory Financial Group. Mary Kipp, president and CEO of Puget Sound Energy, joins the Hawaiian Electric board. Kipp has a strong background in the energy sector, focusing on carbon emission reduction goals. These appointments aim to enhance governance and innovation within HEI.
Hawaiian Electric Industries (NYSE: HE) reported a third-quarter 2022 net income of $62.1 million with diluted earnings per share (EPS) at $0.57, slightly down from $63.4 million and $0.58 EPS in Q3 2021. The utility business showed resilience amid inflation, with notable performance in clean energy transition and strong credit trends in its banking arm, which posted a 9.3% year-to-date increase in total loans. A quarterly dividend of $0.35 per share was also declared, maintaining a 3.8% dividend yield.
On November 3, 2022, Hawaiian Electric Industries (HEI) declared a quarterly cash dividend of $0.35 per share, payable on December 9, 2022, to shareholders of record as of November 22, 2022. This dividend translates to an annual rate of $1.40 per share, providing a dividend yield of 3.8% based on the share price of $37.27 on the declaration date. HEI has maintained uninterrupted dividend payments since 1901.
American Savings Bank (ASB), a subsidiary of Hawaiian Electric Industries (HE), reported a net income of $20.8 million in Q3 2022, up from $17.5 million in Q2 2022 and $19.3 million in Q3 2021. Key highlights include net interest income rising to $65.7 million and a net interest margin of 2.96%. Total loans increased by 9.3% to $5.7 billion year-to-date. Despite higher noninterest expenses, ASB maintained strong credit trends, reflected in a 0.03% net charge-off ratio and a return on average equity of 15.1%.
Hawaiian Electric Industries, Inc. (HE) will announce its third quarter 2022 financial results on November 7. American Savings Bank, a subsidiary of HEI, will provide its results on October 28. A conference call will be held on November 7 at 11:15 a.m. Hawaii time to discuss consolidated earnings and earnings guidance. The call can be accessed via phone or the HEI website. HEI is heavily involved in Hawaii's energy and financial sectors and is committed to sustainability and economic growth.
Hawaiian Electric Industries (NYSE: HE) reported a net income of $52.5 million for Q2 2022, with diluted EPS at $0.48, down from $63.9 million and $0.58 in Q2 2021. This decline is attributed mainly to a normalized provision for credit losses at American Savings Bank following strong loan growth. Despite inflationary pressures, Hawaiian Electric's utility segment showed a net income increase to $44.1 million, driven by higher revenue adjustments and stable maintenance efforts. The bank's net income decreased to $17.5 million, reflecting increased provisioning. HEI declared a dividend of $0.35 per share, yielding 3.3%.
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