Hawaiian Electric Industries Inc. reported weak second-quarter earnings, blaming its latest results on the downturn in the state economy and "delayed regulatory action."

HEI said yesterday that it earned $15.5 million, or 17 cents per share, during the three months ending June 30, compared with the year earlier's $5.1 million, or $0.06 per share, net profit.

But the comparison is skewed by a $35.6 million after-tax charge that the company recorded in second quarter 2008. Minus the charge, HEI's second-quarter 2008 net income would have been $40.7 million, or $0.48 per share.

"The performance of our companies continues to be impacted by difficult economic conditions and delayed regulatory action," said Constance Lau, HEI's chief executive officer.

"We continue to work hard to position our company to weather this economic storm and emerge with stronger, improved performance."

The results were far below Wall Street's expectations. Analysts polled by Bloomberg News Service had been expecting earnings of 29 cents per share.

Shares slipped 9 cents to close at $17.92 on the New York Stock Exchange. The company's second-quarter results were announced after the market's close.

Despite the weak quarter, HEI said yesterday that it was maintaining its 31 cents per share quarterly dividend.

HEI said income from its electric utility, Hawaiian Electric Co., tumbled to $15.5 million during the latest quarter from the year-earlier's $27.4 million as kilowatt-hour sales slipped 3.1 percent or $3.4 million.

HECO's operations and maintenance expenses jumped 11 percent, or $9.2 million, during the quarter.

Last month, the state Public Utilities Commission granted HECO an interim 4.7 percent rate increase that will boost the company's revenues by $61.1 million a year.

HECO is seeking an additional 2 percent rate increase, which would raise revenues by about $19 million a year.

Hawai'i consumers, who already pay the nation's highest electricity rates, will see their monthly bills rise $6.48 to nearly $130 under the interim rate hike.

"Further rate relief, regulatory reforms and inclusion of major capital additions into rates are possible near year-end and are necessary for the utility to achieve industry-typical returns," said Lau.

HEI's American Savings Bank subsidiary posted a $4 million profit, compared with a $18.1 million loss during the year-earlier quarter. American Savings took a $35.6 million after-tax charge in second quarter 2008 after selling more than $1 billion in government-backed mortgage securities.

During the latest quarter, HEI said its banking unit posted a $13.5 million provision for loan losses as a result of a single, troubled commercial loan. American Saving's provision for second quarter 2008 was $1.2 million.