The Industrial Services business line consists of the hold-
ing company Bristol Bay Industrial, LLC and its companies
Peak Oilfield Service Company LLC (Peak), Kakivik Asset
Management, LLC (Kakivik), CCI Industrial Services, LLC
(CIS), Alaska Directional, LLC, PetroCard, Inc. (PetroCard)
and Bristol Alliance Fuels, LLC (BAF). The overall increase
in revenues from FY2018 to FY2019 is primarily due to
the effect of the increase in gallons sold and fuel price
per gallon. The overall increase in earnings was a result
of significant cost reductions in Peak as well as Kakivik
and PetroCard exceeding expectations. Peak provides
specialty services to the oil and gas industry in locations
including Alaska’s Prudhoe Bay, Anchorage, Kenai, Valdez,
and Palmer and to a small extent, North Dakota. Peak pro-
vides a wide variety of services including crane services,
rig moving, ice road construction, drilling support, gener-
al civil work, construction, trucking, facility operations and
maintenance support, tank cleaning, and power systems.
Kakivik specializes in nondestructive testing and inspec-
tion. CIS provides a diverse array of specialty services to
the oil and gas industry. Alaska Directional, LLC provides
project management, directional drilling, trenching, plow-
ing, cellular towers, and communications infrastructure
services. PetroCard, a reputable fuel distributor in the
Pacific Northwest, is based in Kent, Washington and
distributes fuel products through cardlock sites, mobile
fueling and wholesale sales to commercial customers
through facilities located primarily in Washington and
Oregon. BAF is a fuel distributor in Dillingham, Alaska.
BAF helps to fulfill BBNC’s strategic goals of developing
economic opportunities in the Bristol Bay region, building
the financial strength of BBNC, and increasing share-
holder employment and development opportunities.
The success of the Industrial Services business line can
be attributed to the focus on quality safety programs that
customers demand in this industry.
The Industrial Services business line is the Corporation’s
largest source of shareholder hire. Average shareholder
hire for this business line was 147 individuals with wages
in excess of $10.2 million paid to shareholders in FY2019.
The Industrial Services business line is expected to con-
tinue to play a key role in pursuit of the goals established
within the Corporation’s strategic plan.
CONSTRUCTION
The following table displays results of Construction operational earnings, before interest and taxes for the fiscal
year ended (in thousands):
FISCAL YEAR
2019 2018 2017
403,666 473,397 440,208
397,363 450,564 415,116
6,303 22,833 25,092
REVENUES
Construction
$
COSTS AND EXPENSES
Construction
Earnings from Construction
$
The following table displays results of Construction EBITDA for the fiscal year ended (in thousands):
EBITDA
The Construction business line is comprised of three sepa-
rately managed company groups: Bristol Industries (jointly
owned by Choggiung Limited [51%] and BBNC [49%]), CCI
Alliance of Companies (excluding CCI Industrial Services,
LLC), and SES Group of Companies (SES). In addition, Bris-
tol Bay Shared Services, LLC, based in Anchorage, Alaska
30
BBNC FY2019 ANNUAL REPORT
$
2019 2018 2017
7,296 24,894 25,645
and Huntsville, Alabama, is the administrative shared ser-
vice company supporting the Construction business line.
Earnings decreased in the Construction business line by
$16.5 million from FY2018. During FY2019, SES experi-
enced several challenging contracts generating significant
losses for this business line. Management expects those