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HAWAIIAN ELECTRIC INDUSTRIES INC. REPORTS 1992 RESULTS; UTILITY SUBSIDIARY RECEIVES INTERIM RATE RELIEF

 HONOLULU, Feb. 3 /PRNewswire/ -- Hawaiian Electric Industries Inc. (NYSE: HE) (HEI) today reported net losses for the three months and the year ended Dec. 31, 1992. The losses resulted primarily from Hurricane Iniki, which hit the island of Kauai on Sept. 11.
 For the year, the net loss was $11.6 million, or 48 cents per share, against net income of $54.8 million, or $2.40 per share, in 1991. For the fourth quarter, HEI's net loss was $4.4 million, or 18 cents per share, compared with net income of $14 million, or 59 cents per share, in the same period of 1991. These results include previously announced reserves established for discontinuing HEI's property-casualty insurance and wind-energy businesses.
 Hurricane Iniki was the third-most-costly natural disaster in the nation's history, causing approximately $2 billion in damage. "Before Iniki, HEI was on its way to improved earnings in 1992," said Robert F. Clarke, HEI president and chief executive officer. "As a result of the hurricane, we are reporting the first annual loss in our 101-year history."
 For the year, earnings from continuing operations increased to $61.7 million and earnings per share were up 4.5 percent to $2.54. For the quarter, earnings from continuing operations increased to $16.5 million and earnings per share advanced 6.3 percent to 67 cents.
 "The growth in earnings from continuing operations reflects the strength of HEI's utility and savings bank businesses," Clarke said.
 For the year, operating income at Hawaiian Electric Co. was up 4 percent, primarily because of rate increases needed to maintain and improve system reliability on the islands of Oahu and Hawaii. For the quarter, utility operating income advanced 14 percent. Kilowatthour sales increased 3 percent during the year.
 American Savings Bank posted increases in operating income of 24 percent for the year and 48 percent in the quarter, primarily because of strong growth in loan production and increased net interest rate spread. Annual loan production increased to $588 million, nearly 58 percent over 1991 levels. American Savings' spread -- the difference between interest earned on assets and cost of funds -- was 3.45 percent in 1992, compared with 3.26 percent in 1991.
 In the third quarter, HEI discontinued its non-utility wind- energy business because of chronic losses from operations and continuing mechanical problems with the wind turbines. Wind-energy losses in 1992 were $13.6 million, or 56 cents per share.
 In the fourth quarter, an increase in the estimate of policyholder claims from $200 million to $300 million led HEI to conclude that it could not contribute additional capital to its property-casualty insurance business. HEI consented to a rehabilitation order that transferred control of the subsidiary to the state insurance commissioner. The order gave possession of the subsidiary's assets to the commissioner and allows her to administer them under the general supervision of the court. HEI wrote off its remaining investment in the insurance business in the fourth quarter, bringing the loss from discontinued insurance operations to $59.7 million or $2.46 per share.
 "At every step, we have sought to act responsibly toward the citizens of Hawaii, our shareholders and our employees," Clarke said. "In the end, we felt the best course of action was to voluntarily place our insurance business under the control of the state insurance commissioner."
 In other developments, HEI's electric utility subsidiary that serves the islands of Maui, Molokai and Lanai received an interim decision from the Hawaii Public Utilities Commission authorizing an increase of 2.4 percent in annual revenue, or $2.8 million out of a revised interim request for $2.9 million. The increase for Maui Electric Co. Ltd. was effective Feb. 1 and is part of a revised request for an increase of 10 percent, or $11.4 million, based on a 1993 test year. Other elements of the proposed rate increase are timed to take effect with the 1993 in-service dates for a combined- cycle generating unit on Maui.
 Hawaiian Electric Industries is a diversified electric utility holding company that delivers essential services to the people of Hawaii through its electric utility, savings bank, maritime freight transportation and real estate development subsidiaries.
 HAWAIIAN ELECTRIC INDUSTRIES INC. AND SUBSIDIARIES
 Consolidated Statements of Income (Loss)
 (Unaudited)
 (in thousands, except per share amounts)
 Three months ended Year ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenues
 Electric utility $221,109 $176,724 $778,690 $740,632
 Savings bank 50,394 50,157 202,995 198,776
 Other 10,103 13,367 49,698 53,834
 Total 281,606 240,248 1,031,383 993,242
 Expenses
 Electric utility 194,569 153,349 674,849 640,376
 Savings bank 40,170 43,242 171,668 173,561
 Other 13,104 9,784 48,647 46,249
 Total 247,843 206,375 895,164 860,186
 Operating income
 Electric utility 26,540 23,375 103,841 100,256
 Savings bank 10,224 6,915 31,327 25,215
 Other (3,001) 3,583 1,051 7,585
 Total 33,763 33,873 136,219 133,056
 Interest expense --
 electric utility
 and other (13,458) (10,329) (47,141) (43,521)
 Allowance for
 borrowed funds
 used during
 construction 550 424 2,095 1,307
 Preferred stock
 dividends of electric
 utility subsidiaries (1,659) (1,704) (6,710) (6,887)
 Allowance for equity
 funds used during
 construction 1,742 1,313 6,781 3,998
 Income from
 continuing operations
 before income taxes 20,938 23,577 91,244 87,953
 Income taxes 4,471 8,585 29,529 32,333
 Income from continuing
 operations 16,467 14,992 61,715 55,620
 Loss from discontinued
 operations
 Insurance business (17,000) 114 (59,732) 1,704
 Non utility wind
 energy business (3,855) (1,125) (13,565) (2,498)
 Total (20,855) (1,011) (73,297) (794)
 Net income (loss) ($4,388) $13,981 ($11,582) $54,826
 Earnings (loss) per
 common share
 Continuing operations $0.67 $0.63 $2.54 $2.43
 Discontinued operations (0.85) (0.04) (3.02) (0.03)
 Total ($0.18) $0.59 ($0.48) $2.40
 Dividends per common
 share $0.57 $0.56 $2.25 $2.21
 Weighted average number
 of common shares
 outstanding 24,614 23,750 24,275 22,882
 -0- 2/3/93
 /CONTACT: Constance H. Lau, treasurer, 808-543-7384 or fax 808-543-7966, or Gary S. Sharpe, director-investor relations, 808-543-7385, both of Hawaiian Electric/
 (HE)


CO: Hawaiian Electric Industries Inc. ST: Hawaii IN: UTI OIL SU: ERN

KJ-MS -- LA009 -- 2213 02/03/93 08:03 EST
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