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Hawaiian Electric shares extend declines amid worries over wildfire liability

Published 08/17/2023, 10:58 AM
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Investing.com -- Shares in Hawaiian Electric (NYSE:HE) shed more than a sixth of their value in early U.S. trading on Thursday, tacking on to a recent slide in the stock that has been linked to concerns over its possible liability in Maui's deadly wildfires.

The electric utility has now fallen by around 60% since the Aug. 8 fires that left behind a trail of devastation over parts of the Hawaiian island. According to the Associated Press, at least 110 people were killed, making it the deadliest U.S. wildfire in more than a century.

Hawaiian Electric, the largest electricity supplier in Hawaii, now faces litigation and a financial crisis over indications that its power lines may have had a role to play in igniting the fire. Media reports say that an increasing amount of evidence suggests that the utility's equipment may have been involved, although no conclusion has yet to be reached.

The company has promised to conduct its own investigation into how its equipment may have factored into the fire, with Chief Executive Shelee Kimura saying it is "important to understand what happened" in order to "make sure it doesn't happen again." It has also said it is cooperating with a separate probe by Hawaii's attorney general.

Meanwhile, the Wall Street Journal has reported that the company is in talks with restructuring-advisory firms over the options it has to address its financial and legal hurdles.

In a statement on Wednesday, Hawaiian Electric noted about 2,000 customers in West Maui remain without electricity, while over 100 utility poles will be needed to meet its "restoration priorities."

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