EXHIBIT 99.2
NEWS RELEASE

For further information contact:

Kerry J. Chauvin                                         Joseph "Duke" Gallagher
Chief Executive Officer                                  Chief Financial Officer
(504) 872-2100                                                    (504) 872-2100
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FOR IMMEDIATE RELEASE
WEDNESDAY, JANUARY 28, 1998



                         GULF ISLAND FABRICATION, INC.
                        REPORTS FOURTH QUARTER EARNINGS
                                        

     Houma, LA  Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported pro
forma net income of $3.0 million ($.25 diluted EPS) on revenue of $34.8 million
for its fourth quarter ended December 31, 1997, compared to pro forma net income
of $1.1 million ($.14 diluted EPS) on revenues of $18.6 million for the fourth
quarter ended December 31, 1996.   Pro forma net income for the twelve months
ended December 31, 1997 was $12.2 million ($1.14 diluted EPS) on revenue of
$136.4 million, compared to pro forma net income of $4.4 million ($.55 diluted
EPS) on revenues of $79.0 million for the twelve months ended December 31, 1996.
Pro forma net income gives effect to federal and state income taxes as if the
Company had been a C Corporation for tax purposes during all the periods of 1996
and 1997.  Pro forma net income excludes the non-recurring charge of $1.1
million to record the cumulative deferred income tax provision upon the election
on April 4, 1997 to convert from S Corporation status to C Corporation status.
At December 31, 1997, the Company had a revenue backlog of $86.3 million and a
labor backlog of 1.3 million manhours remaining to be worked.

     On October 6, 1997 the Company's Board of Directors authorized a two-for-
one stock split effected in the form of a stock dividend to be distributed on
October 28, 1997 to shareholders of record on October 21, 1997.  All share and
per share data for all periods presented have been restated to reflect the stock
split.

     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, and steel warehousing and sales.  With the acquisition of
Southport, Inc., effective January 1, 1998, the Company will also be able to
provide the fabrication of living quarters for offshore platforms for the oil
and gas industry.