Hawaiian Electric slumps after utility suspends dividend amid Maui fire fallout
Investing.com -- Shares in Hawaiian Electric Industries (NYSE:HE) shed more than a sixth of their value in premarket U.S. trading on Friday after the company said that it would halt its dividend in the face of scrutiny over its role in the deadly Maui wildfires earlier this month.
In a regulatory filing on Thursday, Hawaii's biggest utility said that it will suspend quarterly cash payouts on its common stock beginning in the third quarter of 2023 in a bid to increase its cash position.
«We regret that this may impact members of our local communities who rely on this dividend as a source of income,» Hawaiian Electric said. «Taking this action will allow us to continue to allocate cash to rebuilding and restoring power and ensure a strong future for the utility.»
The Honolulu-based firm also said that Hawaiian Electric Industries and its Hawaiian Electric subsidiary had withdrawn a combined $370 million from their existing revolving unsecured credit facilities. Both plan to place the cash proceeds into «highly liquid» short-term investments, the group added, saying it is attempting to «proactively strengthen» its balance sheet.
Shares in Hawaiian Electric have fallen sharply this week and have lost more than half of their value since August 8 wildfires in Maui left at least 115 people dead and the town of Lahaina destroyed. Although the exact origin of the fires is not currently known, several groups, including Maui County, have filed lawsuits against Hawaiian Electric, arguing that it was responsible because it failed to turn off its power lines despite warnings of strong winds.
Responding to Maui County's complaint, Hawaiian Electric said it was disappointed that the lawsuit was brought while an investigation into the
Read more on investing.com
