The Inupiat people have survived the rigors of the Arctic for centuries, and now they're surviving in the business world. The Inupiat-owned Arctic Slope Regional Corporation (ASRC) is the largest locally owned and operated business in Alaska. It gets the bulk of its of sales from energy services (ASRC Energy Services) and petroleum refining and marketing unit (
). Other operations include construction (ASRC Construction Holding), governmental services (ASRC Federal Holding), economic development (Alaska Growth Capital BIDCO), local services (Eskimos, Inc.) and tourism (Tundra Tours).
ASRC owns title to nearly 5 million acres of land on Alaska's North Slope which contain a high potential for oil, gas, coal and base metal sulfides. It also owns subsurface and surface rights to certain lands.
The company seeks to adhere to traditional Inupiat values of protecting the land, the environment, and the native culture, while developing economic programs.
It operates in five diverse major business segments: petroleum refining and marketing, government services, energy services, resource development, and construction industries.
has two refineries (strategically positioned along the Trans-Alaska Pipeline) and serves Interior Alaska, South Central Alaska, Kodiak and Dutch Harbor. Its North Pole facility supplies the mining industry in the interior region of Alaska and provides home heating oil to several communities.
ASRC Federal Holding Company provides professional and technical services to the federal government (including aviation, space and missile defense, base operations, resource and development, engineering, IT, and financial management).
ASRC Energy Services offers oilfield engineering, operations, maintenance, construction, fabrication, regulation and permitting, and other services to oil and gas companies. The company provides services to the energy industry throughout Alaska, Canada, and the Gulf of Mexico, as well as in Russia.
ASRC Construction Holding Company provides construction services to commercial and government clients in Alaska, the lower-48, the Gulf of Mexico, and in other countries.
Alaska Growth Capital BIDCO offers economic development finance, including small business loans and investments in economically challenged areas of Alaska.
LRS Inc. provides help to increase well flow output as well as well work-over and well production support.
ASRC represents 12,000 members/shareholders in eight villages on the North Slope of Alaska: Anaktuvuk Pass, Atqasuk, Barrow, Kaktovik, Nuiqsut, Point Hope, Point Lay, and Wainwright. ASRC has its head office in Barrow, with a major administrative office in Anchorage. It has other subsidiary offices in the Lower 48 states.
ASRC is owned by Inupiat Eskimo shareholders. The company has distributed more than $825 million in dividends to its shareholders since 1972. About 40% of ARSC's annual earnings are distributed directly to shareholders through dividends and other benefits. The remainder is reinvested in the company.
Since 2005, ARSC has distributed $15 million each year in benefits to its shareholders in the form of educational scholarships and community support funding, as well as for training and development activities.
The company's strategic plan for 2012 through 2017 calls for ASRC to diversify its holdings to reach $225 million in sustainable earnings before interest and taxes (including a sustainable $55 dividend), and to achieve this goal through minimal debt, a favorable tax position and by making cash available to acquire new businesses inside and outside of Alaska. It is looking for a successful acquisition strategy to diversify revenue streams, increase earnings, and generate new job opportunities for ASRC's shareholders.
Royal Dutch Shell
and the ASRC formed a new company -- Arctic Inupiat Offshore LLC, which includes six village corporations on the North Slope. The agreement with the Shell subsidiary, Shell Gulf of Mexico Inc., gave the Alaska Native company the option of acquiring an overriding royalty interest from Shell's drilling on leases in the Chukchi Sea. (However, Shell shelved its Arctic drilling plans in 2016, after disappointing results).
Mergers and Acquisitions
Expanding its presence in the continental US, in 2016 subsidiary ASRC Industrial Services acquired Tennessee-based Restoration Services, Inc (RSI). RSI's environmental services include regulatory strategy, comprehensive characterization, long-term stewardship, project controls, and beneficial site reuse.
Growing its energy services portfolio, in 2015 ASRC acquired Houston-based Arctic Pipe Inspection, which provides non-destructive testing of oil country tubular goods.
ASRC was set up to own and manage 5 million acres on Alaska's North Slope after the Alaska Native Claims Settlement Act in 1971 cleared the way for oil development in the area.
In 2010 ASRC protested the US Fish and Wildlife Service's designation of Alaskan North Slope oil-producing areas as a critical habitat for endangered polar bears, claiming it would cost ASRC millions of dollars in lost oil revenues. In 2011 it led a coalition of Native groups to sue the
Department of the Interior
over this issue.
In 2012 ASRC Construction Holding expanded into southeast Alaska with the acquisition of native-Alaskan owned McGraw's Custom Construction.