1994 native corporation report.

• Author: Gerhart, Clifford
• Position: Alaska

The economic landscape of Alaska is changing, and the state's Native corporations are rising to the challenge. As Alaska's unique contribution to the capitalist system, these companies have positioned themselves to be key players in the oil and gas industry, in timber, mining and tourism.

Native corporations have discontinued some operations, started other new ones, sought out joint ventures and partners, and reached out into the Lower 48 and into other countries looking for new business. Since being called into existence 22 years ago, these Alaska originals have lost none of their entrepreneurial spirit.

Several Native corporations, including Cook Inlet Regional Corp., Doyon Ltd. and Arctic Slope Regional Corp., have successfully restructured their energy and oilfield support divisions to fit in with the new partnering relationships with Big Oil on the North Slope.

Information on Native corporations was taken from annual reports and telephone interviews. Because fiscal years vary considerably, research for this report used the fiscal year that most accurately reflects calendar year 1993. However, because many of the figures were compiled for a 1994 fiscal year, they were mentioned as 1994 results in annual reports.

AHTNA INC.

Glennallen-based Ahtna Inc. posted a net loss of $518,518 from operations before taxes in 1993, but this was an improvement over 1992's $1.3 million loss from operations. However, total revenues increased from $5.4 million in 1992 to $6.8 million last year. The company is operating under a recovery plan adopted by its board after 1992's losses, which the company's annual report labeled "disturbing."

Financial highlights for Ahtna in 1993 were as follows.

* Reduced staff levels at corporate headquarters lowered general and administrative expenses. Rental income increased as downsizing of corporate offices freed commercial space to be marketed.

* Natural resource revenues declined because of lower 7(i) revenue-sharing payments from other regional corporations and delay of timber harvest.

* Price/Ahtna earnings declined as a result of lower revenues from pipeline maintenance for Alyeska. A new maintenance contract is expected to provide increased work and higher revenues for the joint venture in 1994.

* Ahtna Construction & Primary Products Corp. (AC&PPC) continued maintenance work on Alyeska Pipeline Service Co.'s Pump Station 12, completing several projects. AC&PPC, a big shareholder employer, hopes to achieve stand-alone profitability without JV earnings in 1994.

ALEUT CORP.

Aleut Corp. increased its revenues in 1993, rising from $10.2 million to $14.3 million. However, the company posted a $708,000 before-taxes loss.

Space Mark Inc. (SMI), acquired by Aleut in 1991 to break into federal government operations and maintenance work, reported a profit -- its first since acquisition -- of $243,000. In addition, SMI was certified as an 8(a) Small Disadvantaged (Native) Business by the Small Business Administration, giving it an advantage in bidding for contracts. SMI already has contracts in Colorado, California and Alaska.

Baidarka Corp., established in 1991 as a construction company, posted a loss of over $1 million in 1993, and concerned Aleut management decided to change the direction of this wholly owned subsidiary to take better advantage of its 8(a) certification. In the future, Baidarka will concentrate on light construction and other government service contracts...