Here’s why Hawaiian Electric Industries Inc.’s earnings rose 9.7%

Hawaiian Electric Industries Inc.’s earnings rose 9.7 percent in the third quarter as the holding company’s utilities benefited from higher rates and its bank posted a strong performance.

The state’s dominant utility provider and the owner of American Savings Bank reported Wednesday that net income increased to $65.9 million, or 60 cents a share, from $60.1 million, or 55 cents a share, in the year-earlier period.

Revenue rose 14.1 percent to $768.1 million from $673.2 million.

HEI, the parent of Hawaiian Electric Co., Maui Electric Co. and Hawaii Electric Light Co. on the Big Island, reported that its utilities’ net income edged up 4.7 percent to $49.7 million from $47.5 million in the year-earlier quarter primarily due to more revenue from rate adjustments, rate increases in the three counties it serves and tax savings.

The state’s third-largest bank, which reported its financial results separately on Oct. 30, benefited from higher interest rates, lower taxes and an expanding net interest margin to post a 20.6 percent increase in earnings. Its net income rose to $21.2 million from $17.6 million in the year-earlier period.

“Our utilities continue to work towards Hawaii’s 100 percent renewable energy and carbon neutral goals,” HEI President and CEO Connie Lau said on a company conference call. “We launched the state’s largest ever renewable energy initiative and are now negotiating power purchase agreements in Phase 1 of that effort for seven solar-plus storage projects on three islands to add 260 megawatts of solar and over a 1 gigawatt-hour of storage. If approved by our commission, these projects will displace another 1.2 million barrels of fossil fuel per year, provide renewable energy at some of the lowest prices we’ve seen today and be eligible for performance incentive mechanisms.”

HEI’s stock rose 3 cents to $37.75 after the earnings were released.

THIRD-QUARTER NET

$65.9 million

YEAR-EARLIER NET

$60.1 million

ON THE MOVE

Olomana Loomis ISC has added the following new members to its team:

>> Jessie Saunders is the new senior communications manager. Saunders has 10 years of experience in local and national nonprofit organizations, including previously having served as director of development for the Hawaiian Humane Society.

>> Lisa Ching is the firm’s new media planner/buyer. Ching has more than 15 years of communications, marketing and agency experience working with government and businesses, including having previously worked with Cookie Corner, Subway Restaurants, Ruby Tuesday as well as the Hawaii State Department of Health on projects such as Protect Hawaii’s Keiki and Cover Your Cough.