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HEI profitability boosted by gains at utility subsidiary

  • Hawaiian Electric took its 115-megawatt oil-fired Honolulu Power Plant offline Friday to reduce the island's reliance on fossil fuel for power generation.

    Hawaiian Electric took its 115-megawatt oil-fired Honolulu Power Plant offline Friday to reduce the island's reliance on fossil fuel for power generation.

Strong earnings growth at Hawaiian Electric Industries’ utility subsidiary was the main driver behind a 36 percent gain in first quarter net income, the company reported Wednesday.

HEI earned $45.9 million, or 45 cents a share in the first quarter, up from $33.7 million, or 34 cents a share during the same three-month period in 2013.

Hawaiian Electric Co. led the way with net income of $35.4 million for the January-through-March period, up 45 percent from $24.4 million in the same quarter a year earlier. HECO’s profits were boosted by an $8 million reduction in operation and maintenance expenses and a $6 million gain in net revenue.

HEI reported financial results for its American Savings Bank subsidiary on April 30. The bank’s net income rose 2.7 percent in the first quarter amid strong loan growth and a $2 million after-tax gain from the sale of municipal bonds.

HEI shares rose 63 cents, or 2.7 percent, to close at $23.85 Wednesday on the New York Stock Exchange.

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