HOUMA, La.--(BUSINESS WIRE)--July 23, 2009--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $4.0 million ($.28 diluted EPS) on revenue of $79.1 million for its second quarter ended June 30, 2009, compared to net income of $11.9 million ($.83 diluted EPS) on revenue of $117.9 million for the second quarter ended June 30, 2008. Net income for the six months ended June 30, 2009 was $10.2 million ($.71 diluted EPS) on revenue of $164.1 million, compared to the net income of $25.3 million ($1.77 diluted EPS) on revenue of $241.7 million for the six months ended June 30, 2008.

The company had a revenue backlog of $159.2 million and a labor backlog of approximately 1.8 million man-hours remaining to work, which consist of work remaining at June 30, 2009 and commitments received through July 24, 2009. In past quarters the Company included $147.7 million and 1.6 million man-hours in the backlog related to the MinDOC II project. Although not formally cancelled, due to current economic conditions, it is not likely the MinDOC II project will return to active status in the near future.

SELECTED BALANCE SHEET INFORMATION
(in thousands)
	June 30,		December 31,
		2009		2008
Cash, cash equivalents and short-term investments	$	14,180	$	13,839
Total current assets		108,273		136,380
Property, plant and equipment, at cost,net		203,137		204,695
Total assets		329,486		350,890
Total current liabilities		43,804		74,940
Debt		0		0
Shareholders' equity		263,137		254,207
Total liabilities and shareholders' equity		329,486		350,890

The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, July 24, 2009, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss the Company’s financial results for the quarter ended June 30, 2009. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.811.5441. A digital rebroadcast of the call is available two hours after the call and ending July 31, 2009 by dialing 1.888.203.1112, replay passcode: 9504438.

Gulf Island Fabrication, Inc., based in Houma, Louisiana, is a leading fabricator of offshore drilling and production platforms, hull and/or deck sections of floating production platforms and other specialized structures used in the development and production of offshore oil and gas reserves. These structures include jackets and deck sections of fixed production platforms; hull and/or deck sections of floating production platforms (such as tension leg platforms TLPs, SPARs, FPSOs, MinDOCs); piles; wellhead protectors; subsea templates; various production, compressor and utility modules; offshore living quarters; brown water tow boats; tanks and barges. The Company also provides offshore interconnect pipe hook-up; inshore marine construction; manufacture and repair of pressure vessels; heavy lifts such as ship integration and TLP module integration; loading and offloading of jack-up drilling rigs, semi-submersible drilling rigs, TLPs , SPARs, or other similar cargo; onshore and offshore scaffolding; piping insulation services and steel warehousing and sales.

GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share data)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2009			2008			2009			2008

Revenue	$	79,133		$	117,924		$	164,132		$	241,652
Cost of revenue		70,795			97,863			144,035			198,397
Gross profit		8,338			20,061			20,097			43,255
General and administrative expenses		1,972			2,551			4,196			5,269
Operating income		6,366			17,510			15,901			37,986

Other income (expense):
Interest expense		(18	)		(7	)		(35	)		(13	)
Interest income		-			36			20			145
Other		2			5			2			(55	)
		(16	)		34			(13	)		77

Income before income taxes		6,350			17,544			15,888			38,063

Income taxes		2,337			5,672			5,675			12,751


Net income	$	4,013		$	11,872		$	10,213		$	25,312

Per share data:
Basic earnings (loss) per share	$	0.28		$	0.83		$	0.71		$	1.78
Diluted earnings (loss) per share	$	0.28		$	0.83		$	0.71		$	1.77

Weighted-average shares		14,293			14,251			14,293			14,235
Effect of dilutive securities: employee stock options		39			78			24			65
Adjusted weighted-average shares		14,332			14,329			14,317			14,300

Depreciation and amortization included in expense above	$	4,580		$	4,254		$	9,097		$	8,430

Cash dividend declared per common share	$	0.01		$	0.10		$	0.11		$	0.20

CONTACT:
Gulf Island Fabrication, Inc.
Kerry J. Chauvin, 985-872-2100
Chief Executive Officer
or
Robin A. Seibert, 985-872-2100
Chief Financial Officer