As we reflect back on 2016, Sealaska board and management would like to review the financial forecasts that we provided shareholders within our annual report, annual meeting and community visits. During the year we have graphically highlighted Sealaska’s three main sources of income; operations, ANCSA Section 7(i), and investments and our expectations for 2016 net income.
We knew we were going to face a significant decline in ANCSA Section 7(i) income from other regions, as this income source depends on the price of oil and other commodities that have fallen in price significantly.
Our operational or business income has been highlighted for the last few years as our key management focus. Our short term financial goal to be profitable before 7(i) and investment income was targeted so we could overcome the volatility or ups and downs we face with both 7(i) and investment income. We are glad to report that nearing the end of the year we have been able to achieve results that are very close to the financial forecasts we’ve provided throughout the year. We expect to see net income of around $15 million, an improvement over 2015 results of $12 million, even when facing a steep decline in 7(i) income. Both improved business and investment income have contributed to our increased net income forecast.
We believe our commitment to building three core business platforms that fit our values, are located in the Pacific Northwest and Alaska, and are relevant to our shareholder base will be critical in continuing the operational success and growth in business income we forecast for 2017 and further.
Sealaska’s strategic vision for businesses includes investment and operating in three platforms
• Natural Resources
• Water and Maritime Services
• Seafood and Natural Foods
As we forecasted our financial results throughout the year, we also provided information on core businesses from the formation of Haa Aani, LLC that now encompasses all of our natural resource efforts (see 2016 Q1 Shareholder) to our work improving salmon habitat within our environmental and water services, to our purchase of a minority interest in Independent Packers Corporation (IPC), a custom seafood processor located in Seattle, Washington. Sealaska is excited about the business growth we are seeing and we are committed to continue to provide financial forecasts to shareholders for 2017 and to increase the understanding of our business strategies and industries. We hope the financial forecasts provides you a sense of the improvements we are making, while the information on our businesses provide pride in the work we are doing.
I personally am wishing you an enjoyable holiday season and I look forward to sharing both our final 2016 results and our 2017 forecasts with you in the new year.
Anthony Mallott, Sealaska President and CEO