Arctic Slope Regional Corp.: revenues top $1 billion again.

• Author: Martin, Gary L.
• Position: ABM's top 49ers: business blockbusters - Company Profile

2004 Top 49er Ranking: 1

Position Last Year: 1

2003 Revenues: $1.3 billion

Number of employees: 6,000

It has been said the business world can be cold and unforgiving. And to succeed it takes a special breed of competitor.

Well, the Inupiat Alaska Natives have survived for centuries in a frigid environment, and their Barrow-based Native corporation (Arctic Slope Regional Corp. for the northern Arctic region) has thrived over most of its 30-year history. And in spite of having a "difficult time" in 2003, ASRC has again topped ABM's annual 49ers list as it has for the past 10 consecutive years.

PAINFUL DIP

Even though ASRC crossed the fiscal finish line in 2003 with overall more revenue than it had in 2002, corporate profits were down to $4.5 million or about 50 percent.

According to Conrad Bagne, chief operating officer for ASRC, the decline in prosperity is attributed to several factors. First there was a slowdown in oil exploration on the North Slope, leading to a fall in royalty income. Other causes include a rise in taxes, expensive legal fees and a reorganization of some lack-luster subsidiaries with low performance marks.

"2003 was a disappointing year," said Bagne. "We've now done a fair amount of restructuring and exited some businesses in manufacturing, environmental services and certain types of construction. Now we're moving for ward and seeing a better performance."

ASRC is currently on a course directed toward energy, construction engineering, government services and resource development, according to Bagne.

OIL AND GAS

Bagne said energy involvement includes both services and refining. Last year energy accounted for the corporation's most productive segment, bringing in 36 percent of the company's revenue or $368.2 million.

When the natural gas pipeline becomes a reality, ASRC Energy Services should be on track to play a major role in that operation.

The petroleum refining and marketing was the second most productive segment of the corporation. It accounted for 28 percent, totaling $288.9 million. According to Bagne, those figures should increase, especially with the price of crude rising almost by the hour.

CONSTRUCTION AND ENGINEERING

Engineering and construction, which contributed $121.5 million, about 12 percent, is expected to continue to do well. Through its engineering and construction subsidiaries, ASRC will carry on with its full-service consulting engineering, planning and design services.

Formed in 1981, ASCG Inc. was...