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The Honolulu Advertiser
Posted on: Wednesday, August 2, 2006

Hawaiian Electric profit drops on lower electricity sales

Advertiser Staff

Hawaiian Electric Industries Inc., owner of the state's largest electric utility and American Savings Bank, reported second-quarter profit from continuing operations of 33 cents a share. That compared with analysts' consensus forecast of 41 cents per share.


Earnings per diluted share: 33 cents, down 2 cents a share from year ago.

Revenue: $605 million, up 15.8 percent from year ago.

Income from continuing operations: $27.2 million, down 3.9 percent from year ago.

Utility net income: $17.6 million, down 11.8 percent from year ago.

Bank net income: $16.2 million, up 19.7 percent from year ago.

Other operations: $6.3 million loss, down 29 percent.


  • Electricity sales fell 2.3 percent from a year earlier to 2.46 billion kilowatt hours. HECO said cooler weather resulted in less air-conditioning use. Customers also curbed energy use because of rising prices.

  • Higher maintenance, retirement, staffing and other costs led to an $8.7 million rise in operation expenses.

  • American Savings' net interest income rose because of higher loan balances, loan yields and an increase in non-interest income.


    "Although the number of (utility) customers grew during the quarter, they reduced their usage of electricity in response to weather conditions and the higher cost of electricity during the quarter"

    Constance H. Lau
    President and chief executive officer


    Hawaiian Electric executives will hold a conference call for investors and analysts today at 7 a.m. local time. The call can be accessed through the company's www.hei.com Web site.

    Shareholders will receive a quarterly cash dividend of 31 cents a share on Sept. 12. The dividend is payable to shareholders of record at the close of business on Aug. 15.

    The company said it plans to maintain its dividend at the current level for the foreseeable future.