Hawaiian Electric Company, Inc. (HEI) reported significant financial challenges in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a net loss of approximately $104 million for the third quarter and $1.36 billion for the nine-month period, a stark contrast to net income of $41.6 million and $151.9 million, respectively, in the same periods of 2023. The losses were primarily attributed to estimated wildfire liabilities totaling around $1.92 billion related to the Maui windstorm and wildfire tort claims.

For the three months ended September 30, 2024, total revenues increased to $938.4 million from $901.9 million in the prior year, driven by electric utility revenues of $829.6 million, up from $795 million. However, total expenses surged to $1.06 billion, compared to $826.8 million in 2023, leading to an operating loss of $126.5 million, a significant decline from the operating income of $75.1 million reported in the same quarter of the previous year.

For the nine months ended September 30, 2024, total revenues were slightly higher at $2.73 billion compared to $2.73 billion in 2023. However, total expenses more than doubled to $4.50 billion from $2.46 billion, resulting in an operating loss of $1.77 billion, compared to an operating income of $261.6 million in the prior year.

The company’s cash and cash equivalents increased to $677.7 million as of September 30, 2024, up from $137 million at the end of 2023, primarily due to the completion of a common stock sale that raised approximately $557.7 million. This capital is intended to help finance the initial payment of $479 million related to the wildfire tort claims settlement, expected in late 2025.

Hawaiian Electric's liabilities have also escalated, with total liabilities reaching $16.12 billion, up from $14.86 billion at the end of 2023. The company has accrued significant wildfire tort-related claims liabilities, which have substantially impacted its financial position. The company is currently involved in approximately 750 lawsuits related to the wildfires, and it has entered into settlement agreements to resolve these claims, subject to court approval.

In terms of operational developments, Hawaiian Electric has implemented interim wildfire safety measures and is actively engaged in restoration efforts following the wildfires. The company is also focused on transitioning to renewable energy, with ongoing projects aimed at achieving 100% renewable energy by 2045. However, challenges such as supply chain disruptions and credit rating downgrades have hindered progress on renewable energy projects.

Overall, Hawaiian Electric's financial performance reflects the significant impact of the recent wildfires, with substantial losses and increased liabilities overshadowing slight revenue growth. The company's management is working to secure additional capital to meet its obligations and continue its operations amid these challenges.