Shares of Hawaiian Electric Industries have experienced a significant drop in midday trading following the release of their third-quarter results and an update on the aftermath of the devastating Maui wildfire. The stock has fallen by nearly 17%, reaching $11.64 per share, with a year-to-date decline of 72%.
In light of the recent events, the company has suspended its financial outlook for the year and will delay its quarterly regulatory filing. This decision stems from the announcement made earlier this week about the establishment of a fund designated to assist some of the victims affected by the Maui wildfire. Hawaiian Electric plans to contribute $75 million to this fund, utilizing its insurance payout. As a result, the company expects to file its 10-Q report early next week. It is important to note that individuals who choose to participate in the fund will waive their right to seek compensation through legal action.
As the company works to assess the full impact of the wildfires, including several pending lawsuits, it has also decided to suspend its guidance.
During the third quarter, Hawaiian Electric reported a profit of 37 cents per share, a decline from 57 cents per share in the same period last year. This decrease can be attributed to approximately $27.6 million in charges related to the wildfire incident. However, adjusted earnings for the quarter amounted to 56 cents per share, surpassing analysts' expectations of 54 cents per share, according to FactSet.
Furthermore, revenue for the company during this period decreased by over 13%, reaching $901.9 million.
These recent developments pose significant challenges for Hawaiian Electric Industries as they navigate through the aftermath of the Maui wildfire. The company pledges to diligently address the financial and operational implications of this crisis while prioritizing support for those affected by this tragic event.