Hawaiian Electric Lifts Profit and Sales on American Savings Bank Stake Sale

what happened

Utility holding company Hawaiian Electric Industries reported higher profit and revenue for the third quarter, largely thanks to selling part of its stake in American Savings Bank, according to Dow Jones Newswires. Net profit reached 35 million dollars, or 20 cents a share, up from 31 million dollars, or 18 cents, a year earlier. Excluding certain one-time items, including those tied to the Maui wildfire, adjusted earnings per share came to 13 cents.

Revenue climbed 28% to 1.01 billion dollars. The holding and other businesses, which include non-utility operations, swung to a profit of 22 million dollars from a loss of 6 million. That mainly reflected pre-tax gains from the sale of American Savings Bank shares. The company sold 35% of its 9.9% stake in the bank's IPO in September, leaving about 6.4%.

Profit in the core utility business fell to 13 million dollars from 37 million, mainly because costs rose. Operations and management expenses increased, largely due to storm-related costs in August and September.

why it matters

For investors the picture is mixed: reported results improved on one-time gains from the bank stake, while the core business earnings declined. Further sales of the remaining roughly 6.4% stake could affect future reported results, but underlying performance depends on operating costs.

market impact

Hawaiian Electric shares: one-off bank stake gains offset weaker core utility earnings, so pressure is mixed

• ↔Hawaiian Electric shares mixed — one-off bank stake gains offset a drop in core utility profit

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