Hawaiian Electric Removes Going Concern Doubts After Q3 Loss and Wildfire Settlement

Hawaiian Electric reported a third-quarter loss after the utility removed a warning about its ability to remain in business, saying that a recent capital raise helped mitigate the concerns.

The utility had raised going concern doubts after disclosing that it did not have a financing plan in place for the $1.99 billion Maui wildfire settlement it reached in August.

The company said it expects to pay the total $1.92 billion payment obligation in four equal annual installments of about $478.8 million, and it is now positioned to fund its first settlement payment, which is expected to be required in late 2025.

Related: Hawaiian Electric Finalizes $2 Billion Maui Fire Settlement

The utility firm said it recorded a $121 million after-tax loss due to the accrual of additional estimated wildfire liabilities related to legal claims and cross claims as of Sept. 30.

Hawaiian Electric reported a loss of $82.6 million for the quarter ended Sept. 30, compared with a profit of $43.5 million last year.

(Reporting by Dhumal in Bengaluru; editing by Alan Barona)