Current:Home > MarketsHawaiian Electric lost two-thirds of its value after Maui wildfires. And it might not be over yet, analysts say-LoTradeCoin
Hawaiian Electric lost two-thirds of its value after Maui wildfires. And it might not be over yet, analysts say
View Date:2024-12-24 07:30:22
Hawaiian Electric stocks have plummeted more than two-thirds since the Maui wildfires last week that killed at least 114 people and destroyed the historic town of Lahaina.
Shares jumped about 14% on Friday after Hawaiian Electric filed a report with the SEC saying the utility is seeking advice from experts and the company "intends to be here [Hawaii] for the long term, through the rebuilding effort and beyond."
But analysts don't think the jump in stock price will last.
"There is a great deal of legal uncertainty at this point," Wells Fargo analyst Jonathan Reeder told CBS News. "The prospects of Hawaiian Electric avoiding liability appear highly unlikely, in our opinion, based on the extent of the devastation, Hawaii's liability standard and the way similar wildfire events have played out in other Western U.S. states," Reeder said.
On Thursday, Wells Fargo analysts issued a report saying that the state's primary power company is essentially worth zero dollars – pointing to the increasing death toll, property damage, pain and suffering in Maui.
Hawaiian Electric set a stock price of $8 down from about $17.68 the previous week, and analysts wrote that "economic losses are likely well into the billions of dollars, far exceeding the utility's pre-wildfire equity value."
While the cause of the fires has not yet been determined, investigators are looking into whether downed power lines and decisions by Hawaiian Electric played a role, and claims that the utility did not implement precautionary safety measures to reduce wildfire risks have surfaced. A spokesperson for Maui Electric told CBS News in a statement that some steps were taken to mitigate the possibility of fires sparking before hurricane winds arrived.
The investigation could take months or even years to conclude, Wells Fargo analysts wrote in a report dated Aug. 16, and the extent of HE's insurance coverage likely pales in comparison to potential liabilities.
California utility company PG&E filed for bankruptcy in 2019 after it paid out about $25.5 billion for its role in wildfires in 2017 and 2018 caused by downed power lines. PG&E paid about $13.5 billion to wildfire victims following lawsuits and claims the utility's equipment sparked what is now the most destructive wildfire in California history.
Emily Mae Czachor and the Associated Press contributed reporting
- In:
- Hawaii Wildfires
Cara Tabachnick is a news editor for CBSNews.com. Contact her at [email protected]
veryGood! (2155)
Related
- As US Catholic bishops meet, Trump looms over their work on abortion and immigration
- Alabama lawmakers advance bills to ensure Joe Biden is on the state’s ballot
- What Jax Taylor Said About Divorce Months Before Brittany Cartwright Breakup
- Zion Williamson shines in postseason debut, but leg injury leaves status in question
- Kentucky governor says investigators will determine what caused deadly Louisville factory explosion
- A vehicle backfiring startled a circus elephant into a Montana street. She still performed Tuesday
- Carl Erskine, longtime Dodgers pitcher and one of the Boys of Summer, dies at 97
- What Iran launched at Israel in its unprecedented attack, and what made it through the air defenses
- Cavaliers' Darius Garland rediscovers joy for basketball under new coach
- Shopaholic Author Sophie Kinsella Shares She's Been Diagnosed With Aggressive Form of Brain Cancer
Ranking
- Study finds Wisconsin voters approved a record number of school referenda
- Who will be the No. 1 pick of the 2024 NFL draft? Who's on the clock first? What to know.
- 2024 Olympics are only 100 days away: Here's how Team USA is shaping up for Paris.
- Ahead of Paris Olympics, police oversee evictions, leading to charges of 'social cleansing'
- Watch out, Temu: Amazon Haul, Amazon's new discount store, is coming for the holidays
- We Found Cute Kate Spade Mother’s Day Gifts That Will Instantly Make You the Favorite—and They're On Sale
- Rory McIlroy shoots down LIV Golf rumors: 'I will play the PGA Tour for the rest of my career'
- Caitlin Clark vs. Diana Taurasi, Finals rematch among 10 best WNBA games to watch in 2024
Recommendation
-
Eva Longoria calls US 'dystopian' under Trump, has moved with husband and son
-
Bob Graham, ex-US senator and Florida governor, dies at 87
-
Olympic Sprinter Gabby Thomas Reveals Why Strict Covid Policies Made Her Toyko Experience More Fun
-
Columbia University president to testify in Congress on college conflicts over Israel-Hamas war
-
Kansas basketball vs Michigan State live score updates, highlights, how to watch Champions Classic
-
Senator’s son pleads not guilty to charges from crash that killed North Dakota sheriff’s deputy
-
Hundreds of African immigrants in New York City rally for more protections
-
Emma Roberts Reveals the Valuable Gift She Took Back From Her Ex After They Split