Published January 2019
As we ring in the new year on a high note, there is much to be thankful for. In 2018, Ahtna earned record-high revenues and distributed the largest shareholder dividend in the Corporation’s history. Our success was fueled by our vision to create economic growth and opportunity for future generations of shareholders. I would like to thank our Board of Directors, shareholders and employees for their dedication and hard work throughout 2018.
At the shareholder reception at AFN, and again at the Christmas gatherings, I was left humbled as I got to visit with folks. It is an honor and motivator to work for our shareholder-driven corporation. I look forward to working with all of our employees to ensure Ahtna’s continued success.
Safety is the number-one priority at Ahtna for all of our employees and operations. Keeping that in mind, please make sure to take extra precautions to keep you and your family safe whether you are ice fishing, hunting, snow machining, hiking or just enjoying the great outdoors.
Record revenues and dividends
Early revenue forecasts signal 2018 was a year of continued revenue and operational growth for Ahtna. Revenues for 2018 were over $270 million. In the past three years, we have achieved approximately 50 percent growth in revenues. This is despite Alaska being in a recession over the same time period. Our new relationship with Great American Insurance Group increased our bonding capabilities and opened more doors of opportunity for us. Our enhanced bonding ability will allow us to pursue larger construction projects.
Ahtna received a tax-credit certificate from the State for the exploratory Tolsona gas well. Ahtna entered into a contract with BP to purchase all of our earned tax credits. BP has paid us in full. We really appreciate how well BP has worked with us on tax and carbon credits.
Ahtna is proud to service contracts for our nation’s armed services. Last fall, I had the opportunity to visit several of our job sites on the East Coast that were affected by hurricanes. Recently, Ahtna Design-Build Inc. was named the second-fastest-growing private company by the Orange County Business Journal, a newspaper covering business in Orange County, California. You can read more about their success on page 6.
While some of our projects are experiencing weather-related delays, our subsidiary heads and employees continue to encompass our values of safety, quality and integrity in all they do. The partial government shutdown does have an effect on some of our subsidiary operations, including funding. Ahtna’s financial position is such that it can minimize any impact to employees or subsidiary operations.
As in hunting and fishing, it is difficult to predict the absolute outcome for the new year. We are working diligently to ensure Ahtna is well positioned to continue growing and providing benefits to our shareholders. We expect 2019 to present new challenges as Ahtna and all other Alaska Native corporations experience a decline in service contracts. This is caused by a change in contracting strategies on the part of various government agencies.
To continue providing employment opportunities for shareholders, Ahtna signed a master services agreement (MSA) with the Alaska Gasline Development Corporation (AGDC). The MSA ensures any pipeline that crosses through the approximately 40 miles of Ahtna land is serviced by Ahtna employees, and provides benefits to shareholders. Overseeing the MSA is Cantwell-born Roy Tansy Jr., who will work to maximize shareholder benefits as the gasline progresses.
While 2019 is expected to present new challenges, our dedicated Board of Directors and employees are prepared to work hard for you. Many of our corporation’s projects extend beyond our state; however, Alaska will always remain our priority. We encourage shareholders to visit our website to learn more about training and employment opportunities. We wish everyone a safe, healthy and prosperous 2019.
Tom Maloney, Chief Executive Officer