The following is a summary of the Hawaiian Electric Industries, Inc. (HE) Q2 2024 Earnings Call Transcript:

Financial Performance:

• HEI recorded a Q2 consolidated net loss of $1.3 billion, or $11.74 per share, primarily due to a $1.71 billion pretax loss recorded for estimated wildfire liabilities.

• Excluding one-time losses, consolidated core net income and EPS were $49.1 million and $0.44 per share.

• The bank reported core net income of $20.7 million, an increase from $20.2 million last year, driven by prudent expense management and higher non-interest income.

Business Progress:

• HEI has implemented enhanced wildfire operational strategies, including a Public Safety Power Shutoff program to mitigate wildfire risks.

• The utility has begun installing advanced technologies such as AI-enhanced video cameras and new weather stations to improve wildfire monitoring and response.

• Significant investments are directed towards grid hardening and the expansion of renewable energy sources, with new solar plus storage projects on Maui and Oahu now operational.

Opportunities:

• The clarity provided by the proposed settlement of the Maui wildfires allows HEI to better invest in infrastructure and advance its utility wildfire safety strategy, enhancing grid resilience against various environmental risks.

• Expansion of renewable energy projects continues to be a priority, with recent activations adding significant solar and storage capacity, supporting sustainability objectives.

Risks:

• The ongoing financial implications of the $1.99 billion contribution to the proposed wildfire settlement pose a risk, necessitating a comprehensive financing plan incorporating debt, equity, and possibly other financial instruments.

• The review and potential strategic repositioning of American Savings Bank, which might include selling stakes, could impact financial stability and operational focus.

More details: Hawaiian Electric Industries IR

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