Hawaiian Electric net income surges

By Andrew Gomes
Advertiser Staff Writer

Profits in electricity and banking lifted Hawaiian Electric Industries Inc. net income from continuing operations 19 percent during the three months ended June 30.

The company, in its sixth consecutive quarter of profitability, earned $31 million, or 86 cents a share, compared with $26.1 million, or 78 cents a share, in the same quarter last year.

"We had a strong second quarter," said Robert Clarke, HEI chairman, president and chief executive.

Analysts had expected HEI earnings of about 80 cents a share. The 10 percent gain in per-share net income was in spite of an increase in the number of shares outstanding largely from a November common stock offering.

Hawai'i's largest power utility company contributed $23.9 million to the earnings, a 5 percent increase over $22.7 million in net income during the 2001 second quarter.

Clarke said warmer weather encouraged higher electricity use among residential and commercial customers outside tourism, which offset higher operation and maintenance expenses.

At subsidiary American Savings Bank, net income for the quarter was $14.8 million, up 45 percent over the $10.2 million in 2001 second quarter profits.

Favorable interest rates lowered the cost of money for the bank, which also benefitted by collecting more service charges, higher financial services income and no investment losses, Clarke said. An accounting rule change added another $1 million to the bank's quarterly earnings.

Shares of Hawaiian Electric stock went down with the market yesterday, falling 95 cents to $36.44 before the earnings release.

Reach Andrew Gomes at agomes @honoluluadvertiser.com or 525-8065.