Global Industries, Ltd. Announces Results for the Third Quarter of 2010

HOUSTON, Nov. 3, 2010 /PRNewswire-FirstCall/ -- Global Industries, Ltd. (Nasdaq: GLBL) today announced revenues of $189.5 million for the third quarter of 2010 compared to $203.7 million for the third quarter of 2009. Net loss was $27.9 million, or $0.24 per diluted share, for the third quarter of 2010 compared to net income of $14.0 million, or $0.12 per diluted share, for the third quarter of 2009.  

Included in the third quarter results is a goodwill impairment of $37.4 million in the company's Latin America and North America OCD segments, related to project losses booked in our Latin America segment and downturn in the offshore construction industry.  Also included in the third quarter of 2010 are $23.3 million of net gains on asset disposals/impairments predominately in our Latin America, West Africa, and North America OCD segments, and $0.8 million of relocation and severance costs related to our efforts to centralize certain critical operating functions to Houston, Texas. Excluding these items, net loss was $12.7 million or $0.11 per diluted share.

For the nine months ended September 30, 2010, the Company reported revenues, net loss and loss per diluted share of $418.1 million, $47.8 million and $0.42, respectively, as compared to revenue, net income and earnings per diluted share of $768.0 million, $79.0 million and $0.69, respectively, for the nine months ended September 30, 2009.  

Included in the 2010 year-to-date results is the $37.4 million goodwill impairment, $12.5 million of net gains on asset disposals/impairments and the $0.8 million of relocation and severance costs.  Excluding these items, net loss was $23.8 million or $0.21 per diluted share.

Project awards for the third quarter of 2010 were $216.9 million and backlog at September 30, 2010 was $274.5 million, an increase of $27.4 million from the June 30, 2010 backlog and an increase of $126.9 million from the September 30, 2009 backlog.

Commenting on the third quarter results, Chief Executive Officer John Reed stated, "The results of our Latin America segment are disappointing. As stated before, we are focused on improving project execution and have been diligently building our team and centralizing critical activities over the past few months.  We expect these efforts to improve our performance in the future. In addition, our results continue to be adversely affected by the downturn in our industry and are reflective of the low level of project activity worldwide. Although the government moratorium on deepwater drilling in the U.S. Gulf of Mexico was recently lifted, we continue to be affected by the oil spill as permitting delays and uncertainty in the market have resulted in project delays and cancellations."

A conference call will be held at 9:00 a.m. Central Time on November 4, 2010.  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 the Company's website at www.globalind.com, where it will also be archived for anytime reference until November 25, 2010.

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 offshore 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.  The Company's shares are traded on The NASDAQ Global Select Market under the symbol "GLBL."

This press release may contain forward-looking information based on current information and expectations of the Company that involve a number of risks, uncertainties, and assumptions.  Among the factors that could cause the actual results to differ materially are: industry conditions, prices of crude oil and natural gas, the Company's ability to obtain and the timing of new projects, and changes in competitive factors.  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. Set forth are our Company's results of operations for the periods indicated.

Effective January 1, 2010, we combined our Middle East and Asia Pacific/India segments into the Asia Pacific/Middle East segment.  This change has been reflected as a retrospective change to the financial information for the three months and nine months ended September 30, 2009 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.

SOURCE Global Industries, Ltd.