NEWS RELEASE EXHIBIT 99.1 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, JULY 22, 1998 GULF ISLAND FABRICATION, INC. REPORTS SECOND QUARTER AND YEAR-TO-DATE 1998 EARNINGS Houma, LA -- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported pro forma net income of $5.2 million ($.44 diluted EPS) on revenue of $50.6 million for its second quarter ended June 30, 1998, compared to pro forma net income of $3.3 million ($.28 diluted EPS) on revenues of $35.0 million for the second quarter of 1997. Pro forma net income for the first six months of 1998 was $9.4 million ($.80 diluted EPS) on revenue of $97.6 million, compared to pro forma net income of $5.5 million ($.57 diluted EPS) on revenues of $65.2 million for the first six months of 1997. 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 presented. 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. 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 that was distributed on October 28, 1997 to shareholders of record on October 21, 1997. All share and per share data presented reflects the stock split. At June 30, 1998, the company had a revenue backlog of $84.5 million and a labor backlog of 1.4 million manhours 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, and steel warehousing and sales. With the acquisition of Southport, Inc., effective January 1, 1998, the Company also provides the fabrication of living quarters for offshore platforms for the oil and gas industry. EXHIBIT 99.1(a) GULF ISLAND FABRICATION, INC. CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (in thousands, except per share data)