Message to Shareholders
Happy New Year! I hope you had a joyous holiday season and are ready for the coming year.
It seems like we just wrapped up our special meeting of shareholders on November 16, 2018, and now we are already moving into the next board election cycle.
As you may have already seen, voting for the 2019 annual meeting began on January 23. In each proxy packet, we included a matrix with more information about each candidate. We have nine candidates running for the four open board seats this year. I encourage you to read the information and vote. The easiest way to vote is to visit the eProxy site at https://eproxy.doyon.com. The annual report, proxy statement, candidate matrix and link to the Doyon annual meeting page are also located on the eProxy site. Voting online is fast and easy, and by doing so, you will be entered to win the early bird and annual meeting prizes. Do not miss your opportunity to win part of the $21,000 in cash prizes.
We included the 2018 annual report with the proxy materials. If you have not had a chance to look at it, I encourage you to do so. We had an incredible financial year with a net profit of $99.8 million. Several factors contributed to our success. First, we had an operating income of $43.2 million due to the strong operational year of most of our subsidiaries. We also had significant tax benefits from the Kandik Land Valuation and the Tax Cuts & Jobs Act. In addition, we received a settlement from Doyon Utilities and larger-than-anticipated 7(i) payments from other Alaska Native regional corporations. Overall, it was the highest net income in Doyon’s history.
We have a lot going on in 2019. We continue constructing Doyon Drilling’s Rig 26 in Edmonton, Canada. The project is on schedule and on budget. We will begin trucking the rig to the North Slope this summer and commissioning of the rig will take place in early 2020. In addition, we are finalizing the purchase of a small pipeline in North Pole, Alaska, previously owned by Golden Valley Electric Association. The Regulatory Commission of Alaska approved the sale in January. We are also ramping up our efforts for more outreach to our rural shareholders regarding the Bureau of Land Management’s Bering Sea-Western Alaska and Central Yukon Resource Management Plans. The plans have the potential to have negative impacts to ANCSA lands and Native allotments. We will continue to share information about the plans.
Finally, we just wrapped up our Dialogue with Doyon sessions in Anchorage, Alaska, and Everett, Washington. As always, it is a treat for the board, staff and me to visit with you in person and share information about Doyon. Meetings in Anchorage and Washington are always well-attended as we have a large number of shareholders living in both areas. If you were one of those in attendance, thank you for joining us.
I look forward to seeing many of you at our annual meeting in March. If you have not voted yet, please do so. If you have voted, thank you.
Aaron M. Schutt
President & CEO