Hawaiian Electric Industries, Inc. (NYSE:HE) Q2 2023 Earnings Conference Call August 7, 2023 4:15 PM ET

Company Participants

Mateo Garcia - Investor Relations

Scott Seu - President and Chief Executive Officer

Paul Ito - Chief Financial Officer

Shelee Kimura - President and Chief Executive Officer, Hawaiian Electric

Ann Teranishi - President and Chief Executive Officer, American Savings Bank

Conference Call Participants

Julien Dumoulin-Smith - Bank of America

Paul Patterson - Glenrock Associates

Jonathan Reeder - Wells Fargo

Ashar Khan - Verition Fund

Operator

Good afternoon and thank you for attending today’s Second Quarter 2023 Hawaiian Industries Inc. Earnings Conference Call. My name is Jason and I will be the moderator for today’s call. [Operator Instructions] I would now like to pass the conference over to our host, Mateo Garcia.

Mateo Garcia

Thank you, Jason. Welcome everyone to HEI’s second quarter 2023 earnings call. Joining me today are Scott Seu, HEI President and CEO; Paul Ito, HEI’s CFO; Shelee Kimura, Hawaiian Electric President and CEO; and Ann Teranishi, American Savings Bank President and CEO; and other members of senior management.

Our earnings release and our presentation for this call are available in the Investor Relations section of our website. As a reminder, forward-looking statements will be made on today’s call. Factors that could cause actual results to differ materially from expectations can be found in our presentation, our SEC filings and in the Investor Relations section of our website.

Now Scott will begin with his remarks.

Scott Seu

Greetings, everyone. Thank you for joining us today. I will give an overview of our results, update you on our businesses and the whole economy and then turn the call over to Paul to further discuss our financial results and guidance. Our combination of businesses continued to work well for us in the second quarter, as it has through many different business cycles and economic environments. Both operating companies delivered solid results in the quarter and HEI generated net income of $54.6 million and earnings per share of $0.50 compared to $52.5 million and $0.48 in the same quarter last year.

Despite the headwinds the bank sector has seen this year, ASB's low-risk community banking model and the utility’s execution within our new performance-based regulation, or PBR framework, both contributed to our earnings this quarter. Our utility grew net income to $45.3 million. And although there were elevated operations and maintenance expenses during the quarter, we expect this to moderate in the second half of the year with full year expenses expected to be within annual revenue adjustment or ARA allowed levels. The utility has executed well on its capital plan this year, ensuring the reliability and resilience of our system as we continue to aggressively pursue our clean energy transition.