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The Honolulu Advertiser
Posted on: Saturday, February 24, 2007

HEI earnings off 57% in final 2006 period

Hawaiian Electric Industries Inc. posted a 57.1 percent decline in its fourth-quarter 2006 earnings due in part to investment losses at the parent company and lower income at its bank and utility subsidiaries. A proposed rate hike would increase revenue by roughly $100 million.

BY THE NUMBERS

Revenue: $607.1 million, down 2.8 percent from year ago.

Net income: $16.1 million, down 57.1 percent from year ago.

Earnings per share: 20 cents, down 56.5 percent from year ago.

2006 revenue: $2.4 billion, up 11.1 percent from 2005.

2006 net income: $108 million, down 14.8 percent from 2005.

HIGHLIGHTS

  • Quarterly income at the company's utilities declined 28.5 percent to $13 million. Earnings from American Savings Bank fell 47.5 percent to $17.7 million.

  • Parent lost $6.2 million during quarter due partly to investment losses. During the year, HEI had an after-tax loss of $1.6 million from its investment in Hoku Scientific Inc.

  • Utility companies' other operations and maintenance expenses increased by $5.8 million.

    WHAT THEY ARE SAYING

    "The fourth quarter of 2006 was a tough quarter all around. Results were down quarter-over-quarter for all segments — the utilities, bank and holding and other companies. ... Earnings were down year-over-year primarily due to $2.2 million of after-tax investment losses ... "

    Constance lau
    HEI's CEO


    WHAT'S NEXT

    Hawaiian Electric Co. is seeking a rate increase that would increase O'ahu customers' rates by an average of 7.2 percent but would increase annual revenues by $99.6 million.

    HECO is seeking regulatory approval for a $130 million power plant at Campbell Industrial Park.

    Sister company Maui Electric Co. is asking for a 5.3 percent rate increase that would boost revenue by $18.9 million.

    Analysts say HEI will earn $1.45 to $1.80 per share in 2007.