By Connor Hart
Hawaiian Electric Industries has been conducting what it called a comprehensive review of strategic options for Pacific Current, the utility's investment platform whose $35.2 million asset impairment contributed to its third-quarter loss.
The recent quarter was also hurt by a $203 million loss stemming from estimated wildfire liabilities from tort-related legal claims, the company said Friday.
Earlier in the week, Hawaiian Electric said it had entered two settlement agreements for almost $2 billion, the result of litigation arising from the 2023 Maui windstorm and wildfires.
Chief Executive Scott Seu said the company took an additional accrual for estimated liabilities from the claims during the quarter, in addition to having reclassified a portion of the estimated liabilities as long term.
"The additional accrual and reclassification, along with the recent capital raise to fund the first settlement payment, allowed us to resolve the going concern matter disclosed in the previous quarter's financials, and take another step toward regaining [Hawaiian Electric's] financial strength," he said.
In the third quarter, the company swung to a loss of $104.4 million, or 91 cents a share, compared with a profit of $41.1 million, or 37 cents a share, a year earlier. On an adjusted basis, it posted earnings of 46 cents a share.
Revenue rose 4%, to $938.4 million.
Hawaiian Election said it has no timetable for its review of Pacific Current, which builds local partnerships and invests in clean energy, according to the company.
The company said it is possible no action will be taken as a result of the evaluation, adding it doesn't expect to provide updates on the process unless its board approves a definitive course of action or deems it necessary.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 08, 2024 16:50 ET (21:50 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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