At Sealaska, our work creates possibility for generations to come. This year’s annual report was centered around the endless possibilities to come in our next 50 years — and beyond. No matter the challenges our people may face, Sealaska remains dedicated to serving you and future generations of our descendants. We are committed to providing shareholder benefits and continue to focus on shareholder priorities even as we grow our businesses around a vision of healthy oceans, restoring much-needed balance to our planet.
This vision isn’t just a beautiful dream — it’s good for business, too. Sealaska’s businesses continued to grow income and cash flow in 2022, despite economic challenges, inflationary pressures and the impact of the war in the Ukraine on supply chains. However, these worldwide economic events did negatively affect stock and bond markets, resulting in a large decline in investment income for Sealaska, which had a significant impact on our overall 2022 results.
This decline in income Sealaska faced in 2022 stems from two sources we believe to be one-off events — impacts that we won’t continue to see year after year. The first of these factors is a drop in investment income based on the year’s negative investment market environment. During 2022, our overall investment portfolio, which started the year at $372 million, lost $15 million. The other is the one-year absence of income from carbon credit sales, which has been a significant contributor to Sealaska’s income over the past five years. Sealaska believes carbon credit income to be a positive long-term income source, and we forecast the return of carbon income in 2023 and for years to come. Together, these two atypical financial circumstances resulted in the bulk of the decline of Sealaska’s 2022 net income in comparison to 2021. And we have already begun to recover.
We have faced challenges before, and we will again. Together as people, we are the living embodiment of thousands of years of growth, knowledge and love. We are all intertwined, through ancestors and place, culture and language, yesterday and tomorrow. And we will continue to forge a vibrant future — for the planet, for our communities and for our people.
The 2022 Annual Report is now available — please visit https://mysealaska.com/Services/AnnualReports to learn more.