Alexander & Baldwin Inc.’s agricultural sector – led by Maui’s Hawaiian Commercial & Sugar Co. – produced a “strong performance” in 2011 while losses related to Matson Navigation Co. and the real estate sales division put a drag on company profits.
In reporting its 2011 and fourth-quarter financial results Monday, the Honolulu-based company said it logged a net income of $34.2 million, or 81 cents a share, for the year, down 63 percent from the $92.1 million, or $2.22 a share, in 2010 and down nearly 75 percent from the $132 million, or $3.19 a share, in 2008, as the Great Recession began roiling the national economy.
For the fourth quarter, A&B’s net income was only $1.6 million, or 4 cents a share, down from $20.2 million, or 48 cents a share, in the same quarter the previous year.
The company’s ocean transportation sector showed an operating profit of $74.1 million for the year, down from $118.7 million in 2010. This sector of the company suffered losses from the discontinuing of its second China-Long Beach service in the third quarter.
In addition, A&B said that the company continues to make progress on plans to separate its shipping and real estate/agricultural businesses in the second half of this year.
The agricultural sector, which includes HC&S and trucking and storage companies on Maui, Kauai and the Big Island, showed an operating profit of $22.2 million in 2011, up 264 percent from $6.1 million in 2010. This is a big contrast from three years ago, when agriculture lost $27 million and the board of directors debated shutting down sugar operations.
Maui environmental groups are organizing a letter-writing campaign to persuade Hawaiian Electric Co. and the state government to head off plans to import palm oil from Malaysia to be used in a test at Maui Electric Co.’s Maalaea power plant.
The international campaign was sparked by a German group, Rainforest-Rescue.org. Maui Tomorrow Foundation, Sierra Club Maui and the statewide group Life of the Land are protesting here in the islands.
They oppose a Public Utilities Commission decision to allow HECO to use palm oil at Campbell Industrial Park and to allow Maui Electric to test palm oil at Maalaea.
A spokesman for HECO said Tuesday: “We share a concern for the environment and human rights, which is why in 2007 Hawaiian Electric worked with the Natural Resources Defense Council to create a sustainable biofuels policy that we include in all contracts.”
HECO has signed what it calls a “very short” (two years) contract to supply its Campbell plant with fuel made from recovered animal waste on the Mainland. To get its new Campbell plant permitted, HECO had to promise to use renewable fuel.
For the Maalaea test, it contracted with Sime Darby to supply a million gallons of palm oil.
June 3 (Bloomberg) — Inside an industrial warehouse in South San Francisco, California, Harrison Dillon, chief technology officer of startup Solazyme Inc., examines a beaker filled with a brown paste made of sugar cane waste. While the smell brings to mind molasses, this goo, called bagasse, won’t find its way into people-pleasing confections.
Instead, scientists will empty it into 5-gallon metal flasks of algae and water. The algae will gorge on the treat — filling themselves with fatty oils as they double in size every six hours, Bloomberg Markets magazine reports in its July issue.
Down the hall, past a rainbow of algae strains arrayed in Petri dishes, Chief Executive Officer Jonathan Wolfson shows off a gallon-size bottle of slightly viscous liquid. After drying the algae, wringing out the oil and shipping it to a refinery, this is the prize: diesel fuel that Wolfson says is chemically indistinguishable from its petroleum-based equivalent and which has already powered a Jeep Liberty and a Mercedes Benz sedan.
“We’ve produced tens of thousands of gallons, and by the end of 2010, I hope I can say we’ve produced hundreds of thousands,” Wolfson, 39, says. “In the next two years, we should get the cost down to the $60 to $80-a-barrel range.”
At that price, Solazyme’s algae fuel would compete with $80-a-barrel oil.