NEWS RELEASE EXHIBIT 99.3 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 THURSDAY, APRIL 29, 1999 GULF ISLAND FABRICATION, INC. REPORTS FIRST QUARTER EARNINGS Houma, LA -- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $1.9 million ($.17 diluted EPS) on revenue of $30.3 million for its first quarter ended March 31, 1999, compared to net income of $4.2 million ($.36 diluted EPS) on revenue of $46.9 million for the first quarter ended March 31, 1998. At March 31, 1999, the company had a revenue backlog of $57.6 million and a labor backlog of approximately 900 thousand man-hours remaining to work. Mr. Kerry J. Chauvin, Gulf Island's President and C.E.O. stated, "The slowdown in the oil and gas industry has brought our revenues and margins down to levels about where they were in the first quarter of 1997. We continue to take the necessary steps to maintain our strong balance sheet. With the previous investment in labor saving equipment and under-roof fabrication area, the company is poised to maintain its competitive position and capitalize on the expected future increase in demand for our products and services, especially in the deep water regions." 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 99.3 GULF ISLAND FABRICATION, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per share data) Three Months Ended March 31, ---------------------- 1999 1998 ------- ------- Revenue $30,329 $46,914 Cost of revenue 26,103 38,603 ------- ------- Gross profit 4,226 8,311 General and administrative expenses 1,282 1,614 ------- ------- Operating income 2,944 6,697 Other expense (income): Interest expense 21 42 Interest income (101) (67) Other - net (49) - ------- ------- (129) (25) ------- ------- Income before income taxes 3,073 6,722 Income taxes 1,148 2,489 ------- ------- Net income $ 1,925 $ 4,233 ======= ======= Per share data: Basic earnings per share $0.17 $0.36 ======= ======= Diluted earnings per share(1) $0.17 $0.36 ======= ======= Weighted-average shares 11,638 11,612 ======= ======= Adjusted weighted-average shares(1) 11,656 11,717 ======= ======= Depreciation and amortization included in expense above $ 1,201 $ 993 ======= ======= (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.