Published April 2018
Our 2017 financials are showing some phenomenal results thanks to the work of One Team, One Ahtna. Our net income of $7 million is the highest in Ahtna’s history and revenues reached $238 million, the second highest in 10 years. Ahtna’s total revenues grew from $218 million in 2016 to $238 million in 2017. This is an increase of 9% despite Alaska being in a severe recession and overall 8(a) government contracting being down.
We also saw an increase in shareholder wages and benefits paid in 2017 with a total of $8.74 million, and are working to grow that number. One of our strategies is to pursue new work in Alaska, which is where the majority of our shareholders call home. One such project is the USDA Delta Clearwater Remediation Project. Ahtna Construction and Primary Products Corporation (AC&PPC) recently won the work to restore the Delta Junction Clearwater Divisions to their native state. The project site is located about 14 miles east of Delta on the Alaska Highway which will create new operator and laborer positions near home for shareholders.
We also have many projects located outside Alaska. Our positive reputation and exceptional client service has earned us additional work with existing clients and we are opening new contracting doors through avenues such as our latest Joint Ventures (JVs) with CDM Smith and Centerra. You can read more about two of Ahtna’s latest JV contracts on page 6 of this issue. We are also looking to expand our government contracting work and attended the National 8(a) Conference earlier this year in anticipation of building relationships with additional teaming partners. You can always find the latest job openings on the Ahtna website, but you don’t have to wait for a position to become available. Registering with the online Shareholder Talent Bank enables us to contact you when job and training opportunities become available that may be of interest. Also, our Shareholder Development department is here to help you reach your career goals and get ready for that next great prospect.
We have successfully completed the Plug and Abandonment (P&A) phase of the Tolsona No. 1 gas well program. Despite logistical challenges and the complexity of the work, we didn’t experience any significant setbacks and completed the project ahead of schedule, on budget and with no safety related incidents. Although the single well drilled did not show a strong potential for commercial quantities of gas as we had hoped, we are exploring other resource development opportunities on Ahtna-owned lands.
In regards to the tax credit funds still owed to Ahtna by the State of Alaska (SOA), the Walker Administration introduced a bill earlier this year as part of an economic stimulus plan to pay off up to $1 billion of outstanding oil and gas tax credits by issuing bonds to pay for them at a discount. While it’s good that the SOA is working to pay obligations sooner, it’s unfortunate that payments won’t be made in full. We have paid our Tolsona vendors at 100 percent and the lack of tax credit payments has slowed business investment at a time when it’s needed most due to the severe recession Alaska is currently experiencing.
Safety is a traditional and corporate value for Ahtna and our shareholders and is woven into the fabric of Ahtna’s culture. Our Ahtna-hosted Automated External Defibrillators (AED) and First Aid classes have been well attended by staff and it’s been proven that being informed, planning ahead and taking action saves lives and prevents injuries. In this issue we have shared some important tips for being prepared and putting these activities into practice in your own home to keep you and your family safe from harm.
I look forward to reporting further on Ahtna’s 2017 activities and visiting with everyone at this year’s Annual Meeting of Shareholders in Glennallen.
Chief Executive Officer