CARLYSS, La., Nov 04, 2009 /PRNewswire-FirstCall via COMTEX/ ----Global Industries, Ltd. (Nasdaq: GLBL) announced revenues of $203.7 million for the third quarter of 2009 compared to $218.6 million in the third quarter of 2008. Net income was $14.0 million, or $0.12 per diluted share, for the third quarter of 2009 compared to a loss of $103.1 million, or $0.90 per diluted share, in the third quarter of 2008.

Commenting on the third quarter results, Chairman and Chief Executive Officer John A. Clerico stated, "Despite a significant reduction in revenue from the second quarter of 2009, we were able to generate positive results for the third quarter as we continued to focus on efficient project execution and cost management. Our cash position remains strong at $380 million. We are working hard to secure as many new projects as possible by developing effective and cost-competitive solutions for customers."

During the third quarter of 2009, our Company booked $135.7 million of new work resulting in a backlog of $147.6 million as of September 30, 2009. This compares to a backlog of $397.2 million at September 30, 2008. Commenting on the backlog results, John Clerico stated, "Due to continued delays and postponements of new offshore oil and gas development projects, especially in Latin America, our backlog is at its lowest level for some time. We expect industry conditions to remain difficult for the next several quarters. We are, however, beginning to see a number of potential projects emerge which will commence in late 2010 and beyond. Our new Global 1200, as well as several of our other vessels, position us to compete effectively for a number of these projects. In addition to our business development efforts, we will also continue to proactively implement cost control measures to appropriately size our operations."

Revenue for the third quarter of 2009 included the completion of the Berri and Qatif project in Saudi Arabia and the Camarupim project in Brazil, pipeline repairs in Mexico and Brazil, and pipeline installation projects in India, Indonesia and Thailand. An increase in activity in North America OCD and North America Subsea consisting of smaller projects and dive support services also contributed to revenues for the quarter.

Selling, general and administrative expenses of $19.1 million for the third quarter of 2009 decreased by $6.3 million over the same quarter last year, due to continuing company-wide cost control activities. Interest income of $0.4 million for the third quarter of 2009 decreased by $2.1 million over the same quarter last year primarily due to substantially lower interest rates.

A conference call will be held at 9:00 a.m. Central Time on November 5, 2009. Anyone wishing to listen to the conference call may dial 888-677-0183 (domestic) or 1-773-756-0451 (international) and request connection to the "Global Third Quarter Earnings" call. Phone lines will open fifteen minutes prior to the start of the call. The call will also be webcast in real time on our Company's website at www.globalind.com, where it will also be archived for anytime reference until November 26, 2009.

All individuals listening to the conference call or the replay are reminded that all conference call material is copyrighted by Global and cannot be recorded or rebroadcast without Global's express written consent.

Global Industries, Ltd. is a leading solutions provider of offshore construction, engineering, project management, and support services including pipeline construction, platform installation and removal, deepwater/SURF installations, IRM, and diving to the oil and gas industry worldwide. Our Company's shares are traded on The NASDAQ Global Select Market under the symbol "GLBL."

This press release may contain forward-looking statements within the meaning of the federal securities laws. These statements are based on current information and expectations of Global that involve a number of risks, uncertainties, and assumptions. Among the factors that could cause the actual results to differ materially are: Global's level of capital expenditures, worldwide economic conditions, various risks related to international operations, our ability to retain skilled workers, general industry conditions, prices of crude oil and natural gas, our ability to obtain and the timing of new projects and changes in competitive factors. Although we believe that in making such statements our expectations are based on reasonable assumptions, should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual outcomes could vary materially from those indicated.

ASC 470-20, "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)" became effective for our Company beginning January 1, 2009 and is applied retrospectively to all periods presented in this news release.

Set forth are our Company's results of operations for the periods indicated.

   RESULTS OF OPERATIONS
   (In thousands, except per share amounts)
   (Unaudited)
   
   Three Months Ended    Nine Months Ended
   September 30        September 30
   -------------------   -----------------
   2009        2008      2009      2008
   -------   ---------   -------  --------
   As                   As
   adjusted             adjusted
   
   $203,718   $ 218,551  $768,010  $820,559
   Revenues
   Cost of operations               163,855     307,409   617,609   847,251
   -------   ---------   -------  --------
   Gross profit (loss)           39,863     (88,858)  150,401   (26,692)
   Loss (gain) on asset
   disposals and
   impairments                         274       1,640    (8,249)     (372)
   Selling, general and
   administrative
   expenses                         19,075      25,439    55,635    73,439
   -------   ---------   -------  --------
   Operating income
   (loss)                       20,514    (115,937)  103,015   (99,759)
   Interest income                      402       2,476     1,594    12,709
   Interest expense                  (2,756)     (4,642)   (9,978)  (12,578)
   Other income
   (expense), net                        9        (234)    6,579    (1,866)
   -------   ---------   -------  --------
   Income (loss) before
   taxes                        18,169    (118,337)  101,210  (101,494)
   Income tax expense
   (benefits)                        4,151     (15,229)   22,228   (10,364)
   -------   ---------   -------  --------
   Net income (loss)            $14,018   $(103,108) $ 78,982  $(91,130)
   =======   =========  ========  ========
   
   Earnings (Loss) Per
   Common Share
   Basic                          $  0.12   $   (0.90) $   0.69  $  (0.80)
   Diluted                        $  0.12   $   (0.90) $   0.69  $  (0.80)
   
   Weighted Average Common Shares
   Outstanding
   Basic                          112,693     114,493   112,550   114,135
   Diluted                        113,278     114,493   113,118   114,135
   
   Other Data
   Depreciation and
   Amortization                  $17,924   $  19,762  $ 52,634  $ 50,724
   Backlog at end of
   period                                             $147,584  $397,220
   
   
   
   During the first quarter of 2009, we discontinued allocation of corporate
   stewardship costs to our reportable segments.  This change has been
   reflected as a retrospective change to the financial information for the
   three months and nine months ended September 30, 2008 presented below.
   This change did not affect our consolidated results of operations or tax
   reporting.
   
   Set forth are our Company's results of operations by reportable segment
   for the periods indicated.
   
   
   
   RESULTS OF OPERATIONS BY REPORTABLE SEGMENT
   (In thousands)
   (Unaudited)
   
   Three Months Ended   Nine Months Ended
   September 30        September 30
   -------------------  -------------------
   2009      2008      2009        2008
   --------   --------  --------   --------
   As adjusted           As adjusted
   
   Total segment revenues
   North America OCD        $ 60,011  $  28,868  $108,961  $  58,440
   North America Subsea       46,343     43,422   112,093    103,122
   Latin America              35,749     59,509   185,534    185,259
   West Africa                  (529)    22,924   101,039    140,664
   Middle East                28,668     35,638    82,167    188,085
   Asia Pacific/India         47,433     40,423   206,880    172,317
   --------   --------  --------   --------
   Subtotal                217,675    230,784   796,674    847,887
   --------   --------  --------   --------
   
   Intersegment eliminations
   North America Subsea      (13,957)   (10,159)  (25,394)   (23,187)
   Latin America                   -     (2,074)        -     (2,074)
   Middle East                     -          -    (3,270)    (2,067)
   --------   --------  --------   --------
   Subtotal                (13,957)   (12,233)  (28,664)   (27,328)
   --------   --------  --------   --------
   
   Consolidated revenues      $203,718  $ 218,551  $768,010  $ 820,559
   ========   ========  ========  =========
   
   Income (loss) before taxes
   North America OCD         $12,903  $  (5,961)   $4,924  $ (11,873)
   North America Subsea       10,267        522    25,972      6,906
   Latin America             (10,642)   (19,648)   11,825    (12,132)
   West Africa                (2,709)   (10,103)   30,150    (19,387)
   Middle East                 6,337    (83,273)   15,913    (73,768)
   Asia Pacific/India          9,333     10,805    34,351     35,317
   Corporate                  (7,320)   (10,679)  (21,925)   (26,557)
   --------   --------  --------   --------
   
   Consolidated income (loss)
   before taxes              $ 18,169  $(118,337) $101,210  $(101,494)
   ========  =========  ========  =========
   
   
   
   CONSOLIDATED BALANCE SHEETS
   (In thousands)
   
   September 30,  December 31,
   2009           2008
   -------------  ------------
   Unaudited
   ASSETS
   Current Assets
   Cash and cash equivalents                   $  380,616    $  287,669
   Restricted cash                                  1,139        94,516
   Marketable securities                           31,150             -
   Accounts receivable - net
   of allowance of $1,070
   for 2009 and $12,070 for 2008                 147,842       180,018
   Unbilled work on uncompleted
   contracts                                     116,994        86,011
   Contract costs incurred not
   yet recognized                                  2,619        11,982
   Deferred income taxes                            2,937         7,223
   Assets held for sale                             8,820         2,181
   Prepaid expenses and other                      57,398        44,585
   ----------    ----------
   Total current assets                         749,515       714,185
   ----------    ----------
   Property and Equipment, net                       680,288       599,078
   ----------    ----------
   Other Assets
   Marketable securities - long-term               11,103        42,375
   Accounts receivable - long-term                 24,237        22,246
   Deferred charges, net                           54,948        70,573
   Goodwill                                        37,388        37,388
   Other                                            8,821         3,508
   ----------    ----------
   Total other assets                           136,497       176,090
   ----------    ----------
   Total                                   $1,566,300    $1,489,353
   ==========    ==========
   
   LIABILITIES AND SHAREHOLDERS' EQUITY
   Current Liabilities
   Current maturities of long term debt        $    3,960        $3,960
   Accounts payable                               222,938       207,239
   Employee-related liabilities                    24,839        26,113
   Income taxes payable                            53,372        38,649
   Accrued interest payable                         2,229         5,613
   Advance billings on uncompleted contracts          394         4,609
   Accrued anticipated contract losses                100        35,055
   Other accrued liabilities                        8,364        12,053
   ----------    ----------
   Total current liabilities                    316,196       333,291
   ----------    ----------
   
   Long-Term Debt                                    292,225       289,966
   Deferred Income Taxes                              69,604        64,020
   Other Liabilities                                  13,318        13,266
   
   Commitments and Contingencies                           -             -
   
   Shareholders' Equity
   Common stock, $0.01 par value,
   150,000 shares authorized, and
   120,020 and 119,650 shares issued
   at September 30, 2009 and December
   31, 2008, respectively                          1,200         1,197
   Additional paid-in capital                     513,309       509,345
   Retained earnings                              473,681       394,699
   Treasury stock at cost, 6,130
   shares                                     (105,038)     (105,038)
   Accumulated other comprehensive
   loss                                           (8,195)      (11,393)
   ----------    ----------
   Total shareholders' equity                   874,957       788,810
   ----------    ----------
   Total                                   $1,566,300    $1,489,353
   ==========    ==========
   
   

SOURCE Global Industries, Ltd.

http://www.globalind.com
   

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