Hawaiian Electric Industries Inc. (HE, Financial) filed Quarterly Report for the period ended 2010-09-30.
Hawaiian Electric Industries Inc. has a market cap of $2.12 billion; its shares were traded at around $22.48 with a P/E ratio of 17 and P/S ratio of 0.9. The dividend yield of Hawaiian Electric Industries Inc. stocks is 5.5%.HE is in the portfolios of Richard Aster Jr of Meridian Fund, Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates.
Retirement benefits. For the first nine months of 2010, the Companys and HECO and its subsidiaries defined benefit retirement plans assets generated a gain, after investment management fees, of 7.3%. The market value of the defined benefit retirement plans assets of the Company as of September 30, 2010 was $915 million compared to $874 million at December 31, 2009, an increase of approximately $41 million. The market value of the defined benefit retirement plans assets of HECO and its subsidiaries as of September 30, 2010 was $829 million compared to $792 million at December 31, 2009, an increase of approximately $37 million.
The Company and HECO and its subsidiaries estimate that the cash funding for their qualified defined benefit pension plans in 2010 will be about $28 million and $27 million, respectively, which should fully satisfy the minimum required contribution, including requirements of the utilities pension tracking mechanisms and the plans funding policy. Further, in June 2010, the President signed the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act, which provides, among other things, limited funding relief for defined benefit pension plans. The Company is currently analyzing options with regard to this law that would have the effect of lowering HECOs anticipated 2010 contributions to the pension plan by about $3 million.
The agreement contains provisions for revised pricing in the event of a ratings change. For example, a ratings downgrade of HEIs Issuer Rating (e.g., from BBB/Baa2 to BBB-/Baa3 by Standard & Poors (S&P) and Moodys Investors Service (Moodys), respectively) would result in a commitment fee increase of 5 basis points and an interest rate increase of 25 basis points on any drawn amounts. On the other hand, a ratings upgrade (e.g., from BBB/Baa2 to BBB+/Baa1 by S&P or Moodys, respectively) would result in a commitment fee decrease of 10 basis points and an interest rate decrease of 25 basis points on any drawn amounts. The agreement contains customary conditions which must be met in order to draw on it, including compliance with its covenants (such as covenants preventing its subsidiaries from entering into agreements that restrict the ability of the subsidiaries to pay dividends to, or to repay borrowings from, HEI). In addition to customary defaults, HEIs failure to maintain its financial ratios, as defined in its agreement, or meet other requirements may result in an event of default. For example, under its agreement, it is an event of default if HEI fails to maintain a nonconsolidated Capitalization Ratio (funded debt) of 50% or less (ratio of 19% as of September 30, 2010, as calculated under the agreement) and Consolidated Net Worth of at least $975 million (Net Worth of $1.5 billion as of September 30, 2010, as calculated under the agreement).
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Hawaiian Electric Industries Inc. has a market cap of $2.12 billion; its shares were traded at around $22.48 with a P/E ratio of 17 and P/S ratio of 0.9. The dividend yield of Hawaiian Electric Industries Inc. stocks is 5.5%.HE is in the portfolios of Richard Aster Jr of Meridian Fund, Mario Gabelli of GAMCO Investors, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates.
Highlight of Business Operations:
The price of a barrel of crude oil has fluctuated steadily over the year in the $70-$83 trading range and is expected to average $79 per barrel in the fourth quarter of 2010 according to the U.S. Energy Information Administration October 2010 Short-Term Energy Outlook.Retirement benefits. For the first nine months of 2010, the Companys and HECO and its subsidiaries defined benefit retirement plans assets generated a gain, after investment management fees, of 7.3%. The market value of the defined benefit retirement plans assets of the Company as of September 30, 2010 was $915 million compared to $874 million at December 31, 2009, an increase of approximately $41 million. The market value of the defined benefit retirement plans assets of HECO and its subsidiaries as of September 30, 2010 was $829 million compared to $792 million at December 31, 2009, an increase of approximately $37 million.
The Company and HECO and its subsidiaries estimate that the cash funding for their qualified defined benefit pension plans in 2010 will be about $28 million and $27 million, respectively, which should fully satisfy the minimum required contribution, including requirements of the utilities pension tracking mechanisms and the plans funding policy. Further, in June 2010, the President signed the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act, which provides, among other things, limited funding relief for defined benefit pension plans. The Company is currently analyzing options with regard to this law that would have the effect of lowering HECOs anticipated 2010 contributions to the pension plan by about $3 million.
The agreement contains provisions for revised pricing in the event of a ratings change. For example, a ratings downgrade of HEIs Issuer Rating (e.g., from BBB/Baa2 to BBB-/Baa3 by Standard & Poors (S&P) and Moodys Investors Service (Moodys), respectively) would result in a commitment fee increase of 5 basis points and an interest rate increase of 25 basis points on any drawn amounts. On the other hand, a ratings upgrade (e.g., from BBB/Baa2 to BBB+/Baa1 by S&P or Moodys, respectively) would result in a commitment fee decrease of 10 basis points and an interest rate decrease of 25 basis points on any drawn amounts. The agreement contains customary conditions which must be met in order to draw on it, including compliance with its covenants (such as covenants preventing its subsidiaries from entering into agreements that restrict the ability of the subsidiaries to pay dividends to, or to repay borrowings from, HEI). In addition to customary defaults, HEIs failure to maintain its financial ratios, as defined in its agreement, or meet other requirements may result in an event of default. For example, under its agreement, it is an event of default if HEI fails to maintain a nonconsolidated Capitalization Ratio (funded debt) of 50% or less (ratio of 19% as of September 30, 2010, as calculated under the agreement) and Consolidated Net Worth of at least $975 million (Net Worth of $1.5 billion as of September 30, 2010, as calculated under the agreement).
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