68 Alaska Business | September 2018 www.akbizmag.com
gas development, timber, land trusts, and
carbon sequestration. A forest carbon offset
program would continue over the course of
a century and provide job opportunities for
Ahtna acquired AAA Valley Gravel in
2016, which is strategically located to support
transportation projects in the Matanuska-Susitna Valley.
In FY2017, Ahtna reported spending
$12.8 million on shareholder benefits, including
$1.5 million in dividends, $8.7 million in wages
and benefits, and $2.2 million for charitable
contributions, burial assistance, cultural
camps, and scholarships.
Ahtna is also exploring the possibility of
opening a year-round resort outside Denali
While 2016 was a good year for The Aleut
Corporation, 2017 was even better. Total
revenue reached $211.8 million, the highest in
its history and 53 percent more than its 2015
results. The corporation, with a land base on
the Alaska Peninsula and Aleutian Islands and
headquartered in Anchorage, reports a net income of $11.1 million. Every Aleut Corporation
was profitable in 2017, the first time since 2011.
In a letter to its shareholders, CEO Matthew
Fagnani says the board of directors and management met two years previously to focus on
how to rebuild its subsidiaries so their management teams would be more profitable. Their
focus was on increasing subsidiary operating
income by improving gross margin at the project level; streamlining administrative services;
and increasing business development.
Subsidiaries operate in several business
lines: government operations, maintenance
contracting, civil construction, real estate, fuel
sales, gravel sales, and mechanical contracting.
Contract revenues provide the largest share of
revenue, with Aleut Management Services at
the forefront. In FY2017, Aleut Management
Services reported contract revenue of $113.6
million, about 31 percent of the corporation
The Aleut Corporation has nearly 4,000
shareholders. The corporation made $1.163
million in donations to charitable and not-for-profit entities that benefit shareholders and
descendants, including $900,000 to The Aleut
Foundation. In FY2017, the Aleut Foundation
awarded 198 scholarships totaling $667,417.
The foundation also provides career development opportunities, internships, and leadership
The Aleut Corporation distributed more
than $2.5 million in dividends and elder
benefits in F Y2017.
Arctic Slope Regional Corporation
Arctic Slope Regional Corporation (ASRC) is
one of the state’s most successful businesses.
The corporation, with a land base on Alaska’s
North Slope and corporate offices in Utqiaġvik
and Anchorage, reports total revenue of $2.6
billion in FY2017.
Nearly half of ASRC’s revenue comes from
government services, with petroleum refining
and marketing accounting for another quarter.
Energy support services, industrial services,
construction, and resource development make
up the rest of its diverse portfolio. In late 2017,
the corporation marked another milestone by
surpassing $1 billion in dividend payments to
shareholders since the corporation was formed
in 1972. ASRC has more than 12,000 Iñupiat
In 2017, ASRC won a long-fought victory
when the coastal plain of the Arctic National
Wildlife Refuge was opened to responsible
oil and gas development under a provision in
the Tax Cuts and Jobs Act. The corporation,
along with Alaska’s congressional delegation
and other key players, fought to open the
coastal plain for nearly forty years.
ASRC also won an Emmy Award for its
long-format documentary “True North, the
Story of ASRC” from the Northwest Chapter
of the National Academy of Television Arts &
Sciences. The documentary shares the story
of the company’s early leaders, from their
fight for land before statehood to the signing of the Alaska Native Claims Settlement
Act to today’s planning process to expand
opportunities for ASRC’s shareholders, the
corporation’s president and CEO says in a
“In the fewer than fifty years since our
incorporation, ASRC has grown into the largest
locally-owned and -operated business in
Alaska, and that was no accident,” says Rex
A. Rock Sr., ASRC president and CEO. “This
production really highlights the decision-making process from our early leaders, based
on their Iñupiaq values, that led to our success,
and I’m honored the documentary is being so
Elena Kosbruk is wearing Alutiiq/Sugpiaq regalia, representing the Koniag region.
© Judy Patrick