Mobile Edition
Print
Get the Mag
Weekly Updates[ILLUSTRATION OMITTED]
For many companies, breaking the billion-dollar mark calls for a major celebration. Yet two Alaska Native corporations that recently earned in excess of this amount in the past fiscal year or early 2007 (fiscal years vary for Native corporations) are not making much of a fuss. While proud of their accomplishments, both Barrow-based Arctic Slope Regional Corp. (ASRC) and Anchorage-based Bristol Bay Native Corp. (BBNC) say that there is still much to be done.
"We do not look at our achievements as opportunities to rest," explained ASRC President and CEO Roberta "Bobbi" Quintavell of the company that has broken the billion-dollar mark for the fourth year in a row. "We have had some successful years, but we cannot stop there. We are proud of our past. We honor our traditions. We share our success. But as a 21st century company, we need to set our sights on new goals."
In 2006, ASRC's revenues reached a record high of $1.7 billion, with a net income of $206.3 million. In 2005, the company's revenues reached $1.6 billion with net income of $127.5 million. ASRC also earned more than $1.3 billion in 2004 and $1 billion in 2003.
Bristol Bay Native Corp. reached the billion-dollar milestone for the first time this year, earning slightly more than $1 billion for the fiscal year ending March 31, 2007, with net income of approximately $16 million. "Certainly, we are very proud of reaching this milestone, and we hope that our shareholders, employees and business partners are proud of the company as well," said Jason Metrokin, director of shareholder and corporate relations. "The most important thing about this milestone, however, is our ability to pay predictable and increasing dividends to our shareholders and to grow as a company."
[ILLUSTRATION OMITTED]
According to Metrokin, one of BBNC's subsidiaries, PetroCard Services, earned the bulk of the company's revenues in the past year. "Petroleum sales and services contributed about $800 million to our gross revenues, with contract services adding another $200 million, and the rest made up through our investment portfolio," he explained. Each year, the company pays out 45 percent of its operating earnings in shareholder dividends, which equaled $5 million last year. Since 1978, BBNC has paid out more than $70 million to shareholders.
[ILLUSTRATION OMITTED]
Approximately one-third of ASRC's revenues come from oilfield and remote construction businesses, with another third earned through its technical services businesses. This segment includes aerospace engineering support services, as well as management support services, information technology services, financial management, aviation services and more. The remainder of the company's earnings comes from the refining sector, natural resource development and other businesses.
"All of the profits from our business activity go to the benefit of our shareholders," said Quintavell. "Approximately 35 percent of adjusted net income is paid in annual cash dividends to shareholders, and approximately 65 percent is reinvested for future growth of the company." To date, ASRC has paid $223.4 million in shareholder dividends, including $47.6 million in 2006.
As these companies continue to grow, so will the benefits to their shareholders and communities. "We have never wavered from our dedication to creating shareholder value," said Quintavell.
And they've found more than one billion ways to do it.
Will NANA/Chugach Alaska be next?
It may not be long before third and fourth Native corporations join the ranks of billion-dollar companies. According to Kevin E. Thomas, chief financial officer for NANA Regional Corp., the Kotzebue-based company earned $805.8 million in 2006, a 52.9 percent increase over the year before. With a net income of just more than $16 million in 2006, NANA paid $9.4 million to shareholders; the company's highest dividend ever.
Chugach Alaska is also close to becoming a billion-dollar corporation, with gross revenues of $890.4 million in 2006.
FEED