HEI(HE) - 2024 Q4 - Annual Results

Financial Performance - HEI reported a full year 2024 net loss of $1,426 million, or $11.23 per share, compared to a net income of $199 million, or $1.81 per share in 2023[2]. - Core income from continuing operations for 2024 was $124 million, or $0.98 per share, down from $152 million, or $1.38 per share in 2023[2]. - The fourth quarter 2024 net loss was $68 million, or $0.40 per share, compared to net income of $49 million, or $0.44 per share in Q4 2023[2]. - Hawaiian Electric's full-year net loss was $1,226 million, compared to net income of $194 million in 2023, primarily due to pre-tax wildfire-related expenses of $2,019 million[6][7]. - The loss from discontinued operations totaled $103 million for 2024, compared to net income of $53 million in 2023[10]. - The holding and other companies reported a net loss of $96 million in 2024, up from $48 million in 2023, primarily due to higher wildfire-related expenses[11]. - The company reported a GAAP net loss of $1,226,362,000 for the year ended December 31, 2024, compared to a profit of $193,952,000 in 2023[32]. - Non-GAAP (core) net income for the year ended December 31, 2024, was $180,739,000, down from $195,068,000 in 2023, a decrease of 7%[32]. - The GAAP net loss reported for the year ended December 31, 2024, was $(96,161,000), significantly higher than the $(48,076,000) loss in 2023[33]. - Non-GAAP (Core) net loss for the year ended December 31, 2024, was $(56,438,000), compared to $(43,371,000) in 2023[33]. Revenue and Expenses - Total revenues for Q4 2024 were $799,180,000, a decrease of 6.4% from $853,424,000 in Q4 2023[23]. - Electric utility revenues decreased to $796,174,000 in Q4 2024 from $849,982,000 in Q4 2023, reflecting a decline of 6.3%[26]. - Total expenses for Q4 2024 were $745,518,000, down 4.3% from $779,093,000 in Q4 2023[23]. - Operating income for Q4 2024 was $53,662,000, compared to $74,331,000 in Q4 2023, representing a decline of 28%[23]. - The average fuel oil cost per barrel decreased to $104.38 in Q4 2024 from $132.47 in Q4 2023[26]. - Total pretax expenses for the year ended December 31, 2024, were $27,203,000, compared to $12,304,000 in 2023, reflecting a substantial increase[33]. Wildfire-Related Expenses - The company recorded a provision of $1,875,000,000 for wildfire tort-related claims in 2024[26]. - Total Maui wildfire-related pretax expenses for 2024 reached $2,046,030,000, significantly higher than $127,112,000 in 2023[31]. - Wildfire tort-related claims amounted to $1,915,000,000 for the year ended December 31, 2024, compared to $75,000,000 in 2023[31]. - Total Maui windstorm and wildfire-related expenses, net of insurance recoveries, for 2024 were $1,895,086,000, compared to $1,503,000 in 2023[32]. - Total Maui windstorm and wildfires related expenses, net of insurance recoveries, were $4,040,000 for Q4 2024, compared to $1,254,000 in Q4 2023[33]. Legal and Interest Expenses - Legal expenses related to Maui wildfire claims totaled $13,449,000 for Q4 2024, compared to $23,768,000 in Q4 2023, a reduction of 43%[31]. - Legal expenses for the three months ended December 31, 2024, amounted to $2,212,000, a decrease from $5,282,000 in the same period of 2023[33]. - The company incurred interest expenses of $14,834,000 for the year ended December 31, 2024, significantly higher than $2,600,000 in 2023[31]. - Interest expenses for the year ended December 31, 2024, were $3,666,000, compared to $1,377,000 in 2023, indicating a significant increase[33]. Dividends and Shareholder Returns - The utility dividend to HEI remains suspended due to limited cash needs following recent equity issuance[9]. - Non-GAAP diluted earnings per share for Q4 2024 was $0.20, down from $0.34 in Q4 2023, a decline of 41%[31]. - Basic earnings per common share for continuing operations were $0.17 in Q4 2024, down from $0.41 in Q4 2023[23]. Strategic Changes - HEI sold 90.1% of American Savings Bank, simplifying its strategy and regulatory position while allowing a focus on the utility business[3][5]. - The utility achieved a 36% renewable portfolio standard in 2024, on track to meet the 40% milestone by 2030[3][5].