NEWS RELEASE EXHIBIT 99.2 For further information contact: Kerry J. Chauvin Joseph "Duke" Gallagher Chief Executive Officer Chief Financial Officer (504) 872-2100 (504) 872-2100 - -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE WEDNESDAY, FEBRUARY 2, 2000 GULF ISLAND FABRICATION, INC. REPORTS FOURTH QUARTER EARNINGS Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $1.1 million ($.09 diluted EPS) on revenue of $32.8 million for its fourth quarter ended December 31, 1999, compared to net income of $4.1 million ($.35 diluted EPS) on revenue of $43.0 million for the fourth quarter ended December 31, 1998. Net income for the twelve months ended December 31, 1999 was $6.7 million ($.57 diluted EPS) on revenue of $120.2 million, compared to net income of $18.8 million ($1.61 diluted EPS) on revenue of $192.4 million for the twelve months ended December 31, 1998. At December 31, 1999, the company had a revenue backlog of $38.9 million and a labor backlog of approximately 680,000 man-hours remaining to work. Gulf Island Fabrication, Inc., based in Houma, Louisiana, is a leading fabricator of offshore drilling and production platforms and other specialized structures used in the development and production of offshore oil and gas reserves. The Company also offers offshore interconnect pipe hook-up, inshore marine construction, manufacture and repair of pressure vessels, steel warehousing and sales, and the fabrication of offshore living quarters. Exhibit 99.2 GULF ISLAND FABRICATION, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, --------------------- --------------------- 1999 1998 1999 1998 --------- --------- --------- --------- Revenue $ 32,772 $ 42,951 $ 120,241 $ 192,372 Cost of revenue 30,224 34,813 105,813 156,326 --------- --------- --------- --------- Gross profit 2,548 8,138 14,428 36,046 General and administrative expenses 984 1,491 4,210 6,023 --------- --------- --------- --------- Operating income 1,564 6,647 10,218 30,023 Other expense (income): Interest expense 12 21 58 93 Interest income (269) (85) (739) (265) Other - net 87 - 116 4 --------- --------- --------- --------- (170) (64) (565) (168) --------- --------- --------- --------- Income before income taxes 1,734 6,711 10,783 30,191 Income taxes 662 2,572 4,097 11,359 --------- --------- --------- --------- Net income $ 1,072 $ 4,139 $ 6,686 $ 18,832 ========= ========= ========= ========= Per share data: Basic earnings per share $ 0.09 $ 0.36 $ 0.57 $ 1.62 ========= ========= ========= ========= Diluted earnings per share (1) $ 0.09 $ 0.35 $ 0.57 $ 1.61 ========= ========= ========= ========= Weighted-average shares 11,638 11,638 11,638 11,630 ========= ========= ========= ========= Adjusted weighted-average shares (1) 11,686 11,677 11,691 11,703 ========= ========= ========= ========= Depreciation and amortization included in expense above $ 1,292 $ 1,082 $ 4,973 $ 4,172 ========= ========= ========= ========= (1) The calculation of diluted earnings per share assumes that all stock options are exercised and that the assumed proceeds are used to purchase shares at the average market price for the period.