8-K: Hawaiian Electric Industries Releases 2023 Statistical Supplement

Hawaiian Electric Industries has published its unaudited 2023 Statistical Supplement, providing detailed financial and operational data for the company and its subsidiaries.

Summary

• Hawaiian Electric Industries (HEI) has released its 2023 Statistical Supplement, which includes unaudited financial information for HEI, Hawaiian Electric Company, and American Savings Bank (ASB).
• HEI's consolidated revenues for 2023 were $3,682.2 million, down from $3,742 million in 2022.
• Net income for common stock was $199.2 million in 2023, compared to $241.1 million in 2022.
• Basic earnings per common share were $1.82 in 2023, down from $2.20 in 2022.
• The company's operating income was $352.6 million in 2023, a decrease from $381.1 million in 2022.
• The electric utility segment reported an operating income of $302.2 million in 2023, slightly up from $299.2 million in 2022.
• ASB's operating income was $77.6 million in 2023, a decrease from $101.5 million in 2022.
• HEI's total assets were $17,243.8 million at the end of 2023, compared to $16,284.2 million at the end of 2022.
• The company's common stock equity was $2,344.8 million at the end of 2023, up from $2,202.5 million at the end of 2022.
• The return on average common equity was 8.8% in 2023, down from 10.5% in 2022.
• The dividend payout ratio was 59% in 2023, compared to 64% in 2022.
• The company's full-time employees totaled 3,597 at the end of 2023, down from 3,640 in 2022.

Sentiment

Score: 4

Explanation: The document presents a mixed picture with some positive aspects, but the overall financial performance shows a decline in key metrics, leading to a negative sentiment.

Positives

• The electric utility segment saw a slight increase in operating income, rising to $302.2 million in 2023 from $299.2 million in 2022.
• HEI's total assets increased to $17,243.8 million at the end of 2023 from $16,284.2 million at the end of 2022.
• The company's common stock equity increased to $2,344.8 million at the end of 2023 from $2,202.5 million at the end of 2022.

Negatives

• HEI's consolidated revenues decreased to $3,682.2 million in 2023 from $3,742 million in 2022.
• Net income for common stock declined to $199.2 million in 2023 from $241.1 million in 2022.
• Basic earnings per common share decreased to $1.82 in 2023 from $2.20 in 2022.
• Operating income decreased to $352.6 million in 2023 from $381.1 million in 2022.
• The return on average common equity was 8.8% in 2023, down from 10.5% in 2022.
• ASB's operating income decreased to $77.6 million in 2023 from $101.5 million in 2022.

Risks

• The decrease in net income and earnings per share could indicate potential challenges in the company's profitability.
• The decline in operating income across the consolidated business and at ASB may signal operational or market pressures.
• The reduced return on average common equity suggests a decrease in the company's efficiency in generating profits from shareholder investments.

Future Outlook

The document does not contain specific forward-looking statements or guidance.

Industry Context

This announcement provides insight into the financial performance of a major utility and banking group in Hawaii, which is relevant to understanding the economic conditions and trends in the region. The results can be compared to other utility and banking companies operating in similar markets.

Comparison to Industry Standards

• The return on average common equity for HEI at 8.8% is below the average for the utility sector, which typically ranges from 9% to 11%.
• The net interest margin for ASB at 2.74% is lower than the peer average of 3.30%, indicating potential challenges in profitability compared to similar banks.
• The efficiency ratio for ASB at 75.20% is higher than the peer average of 59.14%, suggesting higher operating costs relative to its peers.
• The renewable generation RPS for Hawaiian Electric at 30% is below the state's goal of 100% by 2045, indicating a need for further investment in renewable energy sources.
• The average revenue per KWH sold for Hawaiian Electric at 37.86 cents is higher than the national average, reflecting the higher cost of energy in Hawaii.

Stakeholder Impact

• Shareholders may be concerned about the decrease in net income and earnings per share.
• Employees may be affected by any potential cost-cutting measures due to the financial results.
• Customers may see changes in service or pricing due to the company's financial performance.
• Creditors may reassess their risk exposure based on the company's financial health.

Next Steps

• HEI will continue to post information on its website, www.hei.com, under the Investor Relations section.
• Investors should monitor the Investor Relations section of HEI's website, press releases, SEC filings, and public conference calls and webcasts.

Key Dates

Keywords

Hawaiian Electric Industries, HEI, Hawaiian Electric Company, American Savings Bank, Financial Results, Statistical Supplement, Earnings, Revenue, Net Income, Operating Income, Utilities, Banking