Global Industries 8-K Global Industries, LTD. Announces Results for the First Quarter of 2008

Exhibit 99.1

Global Industries, Ltd.   

For Immediate Release
PRESS RELEASE

Contact: Peter Atkinson
Tel: 281.529.7979

GLOBAL INDUSTRIES, LTD. ANNOUNCES RESULTS
FOR THE FIRST QUARTER OF 2008

Carlyss, Louisiana, May 7, 2008 – Global Industries, Ltd. (Nasdaq: GLBL) announced revenues of $301.5 million in the first quarter of 2008 compared to $277.0 million in the first quarter of 2007. Net income was $26.8 million, or $0.23 per diluted share, for the first quarter of 2008. This compares to net income of $54.5 million, or $0.46 per diluted share, for the first quarter of 2007. The first quarter of 2007 included higher margin work from post-hurricane projects in the Gulf of Mexico and from Pemex projects in Latin America. Net income in the first quarter of 2008 was negatively impacted by low activity in the Gulf of Mexico due primarily to adverse weather conditions, non-recovered vessel costs, and delayed mobilization of vessels in West Africa due to security and logistical issues.

Higher revenues during the first quarter of 2008 reflect substantial project growth in the Middle East that more than offset lower revenues generated from Latin America and the Gulf of Mexico. Revenues and net income from the Gulf of Mexico during the first quarter of 2008 were negatively impacted by adverse weather and drydocking activity. During the first quarter of 2008, profitability was lower than what it could have been in the Gulf of Mexico, West Africa and Asia Pacific/India by the unavailability of certain vessels undergoing drydocking activity. Non-recovered vessel costs incurred during these regulatory drydockings were approximately $11.3 million.

Selling, general and administrative expenses for the first quarter of 2008 increased by $4.9 million over the same quarter last year primarily due to increased legal fees for the ongoing West Africa internal investigation, salaries and administrative expenses. We experienced higher administrative expenses while establishing offices to support the additional projects in Brazil and the Middle East.

Other income for the first quarter of 2008 increased by $2.7 million over the same quarter last year primarily due to interest income earned on higher balances of cash, cash equivalents, and marketable securities.

The effective tax rate declined by 4% to 27% for the first quarter of 2008 compared to the same quarter last year, reflecting a greater percentage of earnings generated in foreign jurisdictions with lower statutory tax rates.

During the first quarter of 2008, the Company booked $124.5 million of net new work resulting in a backlog of $536.6 million as of March 31, 2008. This compares to a backlog of $530.2 million as of March 31, 2007.

“I am pleased with the growth of our revenues which reflects our expanded operations into international regions, especially the Middle East and Brazil. Unfortunately, during the quarter our profits were reduced by seasonally harsh weather in the Gulf of Mexico and security and logistical issues in West Africa. We are working diligently to overcome the challenges in West Africa, including improving our contract terms to mitigate our financial risk and managing costs.

We have also strengthened our position in Asia Pacific/India with the newly awarded contracts worth $110 million which was announced in April 2008. Backlog continues to be strong and worldwide bid

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activity remains very high at $4.4 billion. I believe that the current trends in energy prices and offshore exploration and development will drive increasing demand for our services in 2008 and beyond.” said B.K. Chin, Chairman and Chief Executive Officer of Global Industries.

A conference call will be held at 9:00 a.m. Central Daylight Saving Time on Thursday, May 8, 2008. Anyone wishing to listen to the conference call may dial 888.455.8368 (domestic) or 210.839.8890 (international) and request connection to the “Global First Quarter Earnings” call. Phone lines will open fifteen minutes prior to the start of the call. The call will also be webcast in real time on the Company’s website at www.globalind.com, where it will also be archived for anytime reference until May 29, 2008.

All individuals listening to the conference call or the replay are reminded that all conference call material is copyrighted by Global and cannot be recorded or rebroadcast without Global’s express written consent.

Global Industries, Ltd. provides worldwide construction, engineering, and subsea services, including pipeline construction, platform installation and removal, project management, construction support, diving services, diverless intervention, and marine support services to the offshore oil and gas industry.

This press release may contain forward-looking information based on current information and expectations of the Company that involve a number of risks, uncertainties, and assumptions. Among the factors that could cause the actual results to differ materially are: industry conditions, prices of crude oil and natural gas, the Company’s ability to obtain and the timing of new projects, and changes in competitive factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual outcomes could vary materially from those indicated.

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Set forth are the Company’s results of operations and selected balance sheet amounts for the periods indicated.

RESULTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)

	Three Months Ended
	March 31
	2008			2007
Revenues	$	301,465		$	277,009
Cost of operations		247,135			183,535
Gross profit		54,330			93,474
Net gain on asset disposal		(2,163	)		(1,320	)
Selling, general and administrative expenses		23,039			18,144
Operating income		33,454			76,650
Other expense (income):
Interest expense		4,118			2,741
Other income, net		(7,620	)		(4,885	)
Income before taxes		36,956			78,794
Income taxes		10,126			24,338
Net income	$	26,830		$	54,456
Earnings Per Common Share
Basic	$	0.23		$	0.47
Diluted		0.23			0.46
Weighted Average Common Shares Outstanding
Basic		115,267			116,583
Diluted		116,742			117,982
Other Data
Depreciation and Amortization	$	14,072		$	16,799
Backlog at end of period		536,606			530,218

SELECTED BALANCE SHEET AMOUNTS
(Unaudited)
(In thousands)

	As of		As of
	March 31		December 31
	2008		2007
Cash and cash equivalents	$	674,408	$	723,450
Working Capital (including cash and cash equivalents)		815,387		843,017
Total Assets		1,605,287		1,589,798
Debt (including current portion)		392,320		394,300
Shareholders’ Equity		884,932		853,592

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Set forth are the Company’s results of operations by reportable segment for the periods indicated.

RESULTS OF OPERATIONS BY REPORTABLE SEGMENT⁽¹⁾
(Unaudited)
(In thousands)

	Three Months Ended
	March 31
	2008			2007
Total segment revenues
Gulf of Mexico OCD	$	6,940		$	16,862
Gulf of Mexico Subsea		24,019			29,405
Latin America		70,172			101,848
West Africa		40,617			51,274
Middle East		85,509			9,411
Asia Pacific/India		82,008			80,216
		309,265			289,016
Intersegment eliminations
Gulf of Mexico OCD		—			(2,139	)
Gulf of Mexico Subsea		(6,038	)		(1,774	)
Middle East		(1,762	)		(8,094	)
		(7,800	)		(12,007	)
Consolidated revenues	$	301,465		$	277,009
Income (loss) before taxes
Gulf of Mexico OCD	$	(7,930	)	$	(1,209	)
Gulf of Mexico Subsea		(1,574	)		10,609
Latin America		17,824			53,308
West Africa		(6,203	)		509
Middle East		17,969			1,519
Asia Pacific/India		12,639			11,593
Corporate interest income (expense)		4,231			2,465
Consolidated income before taxes	$	36,956		$	78,794

(1) Financial information in the above table reflects reorganized reportable segments which were aligned in 2007.

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