UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
Commission File Number: 2-56600
Global Industries, Ltd.
(Exact name of registrant as specified in its charter)
Louisiana 72-1212563
(State or other jurisdiction of incorporation or organization)(I.R.S.
Employer Identification No.)
107 Global Circle
P.O. Box 31936, Lafayette, LA 70593-1936
(Address of principal executive offices) (Zip Code)
(318) 989-0000
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. x Yes o No
APPLICABLE ONLY TO CORPORATE ISSUERS:
The number of shares of the Registrant's Common Stock
outstanding as of August 5, 1997 was 45,446,088.
Global Industries, Ltd.
Index - Form 10-Q
Part I
Item 1. Financial Statements - Unaudited
Independent Accountants' Report 3
Consolidated Statements of Operations 4
Consolidated Balance Sheets 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition
and Results of Operations 9
Part II
Item 1. Legal Proceedings 13
Item 6. Exhibits and Reports on Form 8-K 13
Signature 14
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
INDEPENDENT ACCOUNTANTS' REPORT
To the Board of Directors and Shareholders of
Global Industries, Ltd.
We have reviewed the condensed consolidated financial statements
of Global Industries, Ltd. and subsidiaries, as listed in the
accompanying index, as of June 30, 1997 and for the three-month
periods ended June 30, 1997 and 1996. These financial statements
are the responsibility of the Company's management.
We conducted our review in accordance with standards established
by the American Institute of Certified Public Accountants. A
review of interim financial information consists principally of
applying analytical procedures to financial data and of making
inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to such condensed consolidated
financial statements for them to be in conformity with generally
accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the consolidated balance sheet of Global
Industries, Ltd. and subsidiaries as of March 31, 1997, and the
related consolidated statements of operations, shareholders'
equity, and cash flows for the year then ended (not presented
herein); and in our report dated June 6, 1997 (June 24, 1997 as
to Note 13), we expressed an unqualified opinion on those
consolidated financial statements. In our opinion, the
information set forth in the accompanying condensed consolidated
balance sheet as of March 31, 1997 is fairly stated, in all
material respects, in relation to the consolidated balance sheet
from which it has been derived.
DELOITTE & TOUCHE LLP
July 31, 1997
New Orleans, Louisiana
Global Industries, Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended June 30,
1997 1996
Revenues $63,176 $50,332
Cost of Revenues 42,337 37,979
Gross Profit 20,839 12,353
Equity in Net Earnings (Loss) of (1,656) --
Unconsolidated Affiliate
Selling, General and Administrative 4,247 2,970
Expenses
Operating Income 14,936 9,383
Other Income (Expense):
Interest Expense (130) (71)
Other 1,515 137
1,385 66
Income Before Income Taxes 16,321 9,449
Provision for Income Taxes 6,202 2,806
Net Income $10,119 $ 6,643
Weighted Average Common Shares
Outstanding 46,567,000 39,436,000
Net Income Per Share $ 0.22 $ 0.17
See Notes to Consolidated Financial Statements.
Global Industries, Ltd.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
June March
30, 1997 31, 1997
ASSETS
Current Assets:
Cash $ 51,156 $ 63,981
Escrowed funds 18,995 19,112
Receivables 57,800 51,762
Advances to unconsolidated affiliate 3,434 13,913
Prepaid expenses and other 4,762 2,874
Total current assets 136,147 151,642
Escrowed Funds 1,552 1,447
Property and Equipment, net 287,719 243,915
Other Assets:
Deferred charges, net 7,274 6,469
Investment in and advances to 1,883 15,071
unconsolidated affiliate
Other 5,597 4,143
Total other assets 14,754 25,683
Total $440,172 $422,687
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term debt $ 1,984 $ 2,266
Accounts payable 29,838 29,828
Accrued liabilities 13,175 9,453
Accrued profit-sharing 4,766 3,566
Insurance payable 3,124 2,802
Total current liabilities 52,887 47,915
Long-Term Debt 40,900 40,947
Deferred Income Taxes 23,598 21,598
Commitments and Contingencies
Shareholders' Equity:
Preferred stock -- --
Common stock, issued and outstanding,
45,418,294, and
45,278,375 shares, respectively 454 454
Additional paid-in capital 201,772 201,331
Retained earnings 120,561 110,442
Total shareholders' equity 322,787 312,227
Total $440,172 $422,687
See Notes to Consolidated Financial Statements.
Global Industries, Ltd.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Quarter Ended June 30,
1997 1996
Cash Flows From Operating Activities:
Net income $10,119 $ 6,643
Adjustments to reconcile net income to
net cash provided
by (used in) operating activities:
Depreciation and amortization 4,855 3,549
Deferred income taxes 2,000 1,000
Equity in net (earnings) loss of
unconsolidated affiliate 1,656 --
Changes in operating assets and
liabilities:
Receivables (6,038) (3,745)
Prepaid expenses and other (1,888) 457
Accounts payable and accrued 5,254 7,207
liabilities
Other (32) --
Net cash provided by (used in) 15,926 15,111
operating activities
Cash Flows From Investing Activities:
Additions to property and equipment (47,629) (10,810)
Additions to deferred charges (1,646) (1,642)
Net repayment of advances to 22,011 --
unconsolidated affiliate
Other (1,469) (95)
Net cash (used in) investing (28,733) (12,547)
activities
Cash Flows From Financing Activities:
Proceeds from sale of common stock 311 229
Net proceeds (repayment) of long-term (329) 3,894
debt
Net cash provided by (used in) (18) 4,123
financing activities
Cash:
Increase (Decrease) (12,825) 6,687
Beginning of period 63,981 5,430
End of period $51,156 $12,117
Supplemental Cash Flow Information:
Interest paid, net of amount $ 83 $ 86
capitalized
Income taxes paid 500 446
See Notes to Consolidated Financial Statements.
Global Industries, Ltd.
Notes To Consolidated Financial Statements (Unaudited)
1. Basis of Presentation - The accompanying unaudited consolidated
financial statements include the accounts of Global Industries,
Ltd. and its wholly owned subsidiaries (the "Company").
Effective December 23, 1996, the Company acquired a 49% ownership
in CCC Fabricaciones y Construcciones, S.A. de C.V., which is
accounted for by the equity method.
In the opinion of management of the Company, all adjustments
(such adjustments consisting only of a normal recurring nature)
necessary for a fair presentation of the operating results for
the interim periods presented have been included in the unaudited
consolidated financial statements. Operating results for the
quarter ended June 30, 1997, are not necessarily indicative of
the results that may be expected for the year ending March 31,
1998. These financial statements should be read in conjunction
with the Company's audited consolidated financial statements and
related notes thereto included in the Company's Annual Report on
Form 10-K for the fiscal year ended March 31, 1997.
The accompanying consolidated financial statements for June 30,
1996 have been adjusted to reflect a two-for-one common stock
split effected in August of 1996.
The financial statements required by Rule 10-01 of Regulation S-X
have been reviewed by independent public accountants as stated in
their report included herein.
2. Commitments and Contingencies - The Company is a party in legal
proceedings and potential claims arising in the ordinary course
of business. Management does not believe these matters will
have a material adverse effect on the Company's consolidated
financial statements.
Aker Gulf Marine filed suit against the company in the U.S.
District Court, Western District of Louisiana, Lafayette Division
in December of 1995 seeking $8.2 million in additional costs
believed by it to be owed because of change orders during
construction of the Pioneer and $5.0 million for disruption,
acceleration and delay damages. Under an agreement reached with
Aker Gulf Marine, Global was given clear title to the Pioneer in
exchange for $3.2 million and the posting of a $4.5 million bond
in favor of Aker Gulf Marine. Such amounts and release of the
vessel are without prejudice to each company's rights to pursue
claims against the other in pending litigation or otherwise. The
Company does not believe that Aker Gulf Marine's claims are valid
and is vigorously defending against them and does not believe
that ultimate resolution of the claims will have a material
adverse impact on the Company's financial statements.
The Company has guaranteed certain indebtedness and commitments
of CCC approximating $50.6 million at June 30, 1997.
The Company estimates that the cost to complete capital
expenditure projects in progress at June 30, 1997 approximates
$90.0 million.
3. Subsequent Event - On July 31, 1997, the Company completed the
acquisition of certain business operations and assets of Sub Sea
International, Inc. and certain of its subsidiaries. The
purchase price consisted of $102 million, paid in cash and funded
from available cash and borrowings under the Company's existing
credit line, and the assumption of certain liabilities. The major
assets acquired in the transaction include three construction
barges, four liftboats and one dive support vessel based in the
United States, four support vessels based in the Middle East, and
support vessels and ROVs based in the Far East and Asia Pacific.
4. Recent Accounting Pronouncements - In February 1997, the
Financial Accounting Standards Board ("FASB") issued Statement of
Financial Accounting Standards No. 128, "Earnings per Share"
("SFAS 128"), which changes the method of calculating earnings
per share ("EPS"). SFAS 128 requires the presentation of "basic"
EPS and "diluted" EPS on the face of the statement of operations.
Basic EPS is computed by dividing the net income available to
common shareholders by the weighted-average shares of outstanding
common stock. The calculation of diluted EPS is similar to basic
EPS except that the denominator includes dilutive common stock
equivalents such as stock options and warrants. The statement is
effective for financial statements for periods ending after
December 15, 1997. The Company will adopt SFAS 128 in the third
quarter of fiscal 1998, as early adoption is not permitted. When
adopted, it will require restatement of prior years' EPS. Had
the provisions of SFAS 128 been in effect as of June 30, 1997,
the Company would have reported basic EPS of $0.22 and diluted
EPS of $0.22 for the three months ended June 30, 1997.
In June 1997, the FASB issued Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" ("SFAS 130").
SFAS 130 requires that all items that are required to be
recognized under accounting standards as components of
comprehensive income be reported in a financial statement that is
displayed with the same prominence as other financial statements.
This statement does not require a specific format for that
financial statement but requires that an entity display an amount
representing total comprehensive income for the period in that
financial statement. SFAS 130 requires that an entity classify
items of other comprehensive income by their nature in a
financial statement. For example, other comprehensive income may
include foreign currency items and unrealized gains and losses on
certain investments in debt and equity securities. In addition,
the accumulated balance of other comprehensive income must be
displayed separately from retained earnings and additional paid-
in capital in the equity section of a statement of financial
position. Reclassification of financial statements for earlier
periods, provided for comparative purposes, is required. The
Company has not determined the impact that the adoption of this
new accounting standard will have on its consolidated financial
statements. The Company will adopt this accounting standard
effective April 1, 1998, as required.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
General
The following commentary presents management's discussion and
analysis of the Company's financial condition and results of
operations. Certain of the statements included below, including
those regarding future financial performance or results or that
are not historical facts, are or contain "forward-looking"
information as that term is defined in the Securities Act of
1933, as amended. The words "expect," "believe," "anticipate,"
"project," "estimate," and similar expressions are intended to
identify forward-looking statements. The Company cautions
readers that any such statements are not guarantees of future
performance or events and such statements involve risks,
uncertainties and assumptions, including but not limited to
industry conditions, general economic conditions, competition,
ability of the Company to successfully manage its growth,
operating risks, risks of international operations, risks of
vessel construction and other factors discussed below and in the
Company's Annual Report on Form 10-K for the year ended March 31,
1997. Should one or more of these risks or uncertainties
materialize or should the underlying assumptions prove incorrect,
those actual results and outcomes may differ materially from
those indicated in the forward-looking statements.
The following discussion should be read in conjunction with the
Company's unaudited consolidated financial statements for the
periods ended June 30, 1997 and 1996, included elsewhere in this
report and the Company's audited consolidated financial statement
and Management's Discussion and Analysis of Financial Condition
and Results of Operations included in the Company's Annual Report
on Form 10-K for the fiscal year ended March 31, 1997.
During fiscal 1997 the Company completed the following
acquisitions: Norman Offshore Pipelines, Inc., ("Norman"), a
pipeline construction company operating in the United States,
which included two shallow water pipelay vessels; Divcon
International Pty Ltd.'s ("Divcon") diving and remotely operated
vehicles ("ROV's") assets in Southeast Asia; and a 49% ownership
interest in a Mexican marine construction contractor, CCC
Fabricaciones y Construcciones, S.A. de C.V. ("CCC"), as well as
two 400 foot combination pipelay derrick barges, the Comanche and
the Shawnee (formerly the DB-21 and DB-l5), operating in West
Africa and in Mexico (under charter to CCC), respectively. The
Company's investment in CCC is accounted for under the equity
method.
During the second quarter of fiscal 1998, the Company completed
the acquisition of certain business operations and assets of Sub
Sea International, Inc. and certain of its subsidiaries. The
$102 million cash portion of the purchase price was funded from
available cash and borrowings under the Company's existing credit
line. The major assets acquired in the transaction include three
construction barges, four liftboats and one dive support vessel
based in the United States, four support vessels based in the
Middle East, and support vessels and ROVs based in the Far East
and Asia Pacific.
Although the Company has been expanding its international
operations, 73% of the Company's revenues in fiscal 1997 and 91%
of revenues in the first quarter of fiscal 1998 were derived from
work performed in the Gulf of Mexico. The offshore marine
construction industry in the Gulf of Mexico is highly seasonal as
a result of weather conditions and the timing of capital
expenditures by oil and gas companies. Historically, a
substantial portion of the Company's services has been performed
during the period from June through November. As a result, a
disproportionate portion of the Company's revenues, gross profit
and net income is generally earned during the second (July
through September) and third (October through December) quarters
of its fiscal year. Because of seasonality, full year results
are not likely to be a direct multiple of any particular quarter
or combination of quarters. The following table documents the
seasonal nature of the Company's operations by presenting the
percentage of revenues, gross profit and net income contributed
by each fiscal quarter for the past three fiscal years.
Quarter Ended
June 30, Sept. 30, Dec. 31, March 31,
Revenues, three year average 22% 32% 25% 21 %
Gross profit, three year average 21 38 25 16
Net income, three year average 20 40 25 15
The Company expanded its operations offshore West Africa during
the first half of fiscal 1996. Strong demand in this market
during the fourth quarters of fiscal 1996 and fiscal 1997
resulted in the fourth quarters of fiscal 1996 and fiscal 1997
making a significantly greater contribution to the year's
revenues, gross profit and net income than historically, which
has a significant impact on the three year averages shown above.
Results of Operations
The following table sets forth for the periods indicated the
Company's statements of operations expressed as a percentage of
revenues.
Quarter Ended
June 30,
1997 1996
Revenues 100.0% 100.0 %
Cost of revenues (67.0) (75.5)
Gross profit 33.0 24.5
Equity in net earnings (loss) of
unconsolidated affiliate (2.6) --
Selling, general and
administrative expenses (6.7) (5.9)
Interest expense (0.2) (0.1)
Other income (expense), net 2.3 0.3
Income before income taxes 25.8 18.8
Provision for income taxe s 9.8 (5.6)
Net income 16.0 13.2
The Company's results of operations reflect the level of offshore
construction activity in the Gulf of Mexico and West Africa for
the first quarter of fiscal 1997 and 1998, and in Asia Pacific
for the first quarter of fiscal 1998, and the Company's ability
to win jobs through competitive bidding and manage projects to
successful completion. The level of offshore construction
activity is principally determined by three factors: first, the
oil and gas industry's ability to economically justify placing
discoveries of oil and gas reserves on production; second, the
oil and gas industry's need to clear all structures from the
lease once the oil and gas reserves have been depleted; and
third, weather events such as major hurricanes.
First Quarter Fiscal 1998 Compared to First Quarter Fiscal 1997
Revenues. Revenues for the first quarter of fiscal 1998 of $63.2
million were 26% higher than the $50.3 million recorded in the
first quarter of fiscal 1997, with strong contributions from Gulf
of Mexico pipelay, derrick, liftboat and diving services in the
current quarter as compared to the same period a year earlier.
The Norman acquisition completed on July 1, 1996 and the
additional shallow water assets acquired resulted in a greater
contribution from the Coastal Division in the first quarter of
fiscal 1998, as compared to the first quarter of fiscal 1997.
The increases were partially offset by lower revenues from West
Africa and the absence of the Hercules (which was undergoing a
major upgrade) during the first quarter of fiscal 1998 as
compared to the same period a year earlier. Barge days employed
were 444 in the first quarter of fiscal 1998 compared with 332
days in the 1997 period, with increases largely from the addition
of the Coastal Division barges as well as the charter of the
Shawnee to CCC in Mexico. Liftboat and DSV days of 1,563 in the
most recent period were 18% higher than the 1,320 days during the
year earlier period. Diver days totaled 8,781 in the first
quarter of fiscal 1998 compared with 3,545 a year earlier, as a
result of higher activity and additional days from the Norman and
Divcon acquisitions.
Depreciation and Amortization. Depreciation and amortization
expenses, including amortization of drydocking costs, were $4.9
million in the first quarter of fiscal 1998 compared to $3.5
million a year earlier. The increase was principally
attributable to additions to the fleet during the year and the
depreciation expense resulting from those additions.
Gross Profit. Gross profit for the first quarter of fiscal 1998
of $20.8 million was 69% higher than the $12.4 million gross
profit for the same quarter a year earlier. The gross profit
increase was primarily attributable to the increases in domestic
services, partially offset by lower than normal gross profit from
international operations resulting from lower activity and
revenues from West Africa. Gross profit as a percent of revenues
increased for the first quarter of fiscal 1998 to 33.0% as
compared to 24.5% for the same quarter a year earlier, primarily
due to the greater domestic service revenues with higher gross
profit margins.
Selling, General and Administrative Expenses. Selling, general
and administrative expenses for the first quarter of fiscal 1998
were $4.2 million, 43% higher than the $3.0 million expense for
the same quarter a year earlier. A provision for retirement and
incentive compensation plan expense of $1.2 million was recorded
in the first quarter of fiscal 1998, compared to $0.4 million for
the same period a year earlier. Of the first quarter fiscal 1998
provision, $0.4 million was included in selling, general and
administrative expenses, compared to $0.2 million for the same
period a year earlier. The increase in selling, general and
administrative expenses largely reflects the cost of staff added
in order to manage the Company's expansion.
Interest Expense and Other Income (Expense). Interest expense,
net of $0.5 million of capitalized interest cost, was $0.1
million in the first quarter fiscal 1998 compared to less than $
0.1 million in the same quarter a year earlier. Other income
(expense) in the first quarter fiscal 1998 of $1.5 million was
higher than the $0.1 million reported a year earlier largely
because the Company had higher cash balances available for
investment.
Net Income. Net income for the first quarter of fiscal 1998
totaled $10.1 million, an increase of 53% from $6.6 million in
the same quarter a year earlier. Included in net income for the
first quarter of fiscal 1998 is a $1.7 million loss associated
with the Company's 49% ownership interest in CCC. The Company's
effective income tax rate increased from 29.7% in the first
quarter of fiscal 1997 to 38.0% in the current quarter,
reflecting the loss of the benefit of a lower effective tax rate
for the Company's international operations which provided a
smaller percentage of revenues during the first quarter of fiscal
1998 as compared to the year earlier period.
Liquidity and Capital Resources
The Company's operations generated cash flow of $15.9 million
during the first quarter of fiscal 1998. Cash from operations,
together with available cash, funded net investing activities of
$28.7 million. Investing activities consisted principally of
capital expenditures, dry-docking costs and reimbursement of
funds advanced to CCC. Working capital decreased $22.5 million
during the first three months of fiscal 1998 from $103.7 million
at March 31, 1997 to $81.3 million at June 30, 1997.
Capital expenditures during the first quarter included the $21.0
million to acquire the Seminole (previously the DLB 900) and $3.2
million to acquire the Sea Tiger (previously the Bulan Malai),
and $12.3 million for continued construction of the upgrade of
the Hercules.
The Company estimates that the cost to complete capital
expenditure projects in progress at June 30, 1997 approximates
$90.0 million. The addition of conventional pipelay capability
and dynamic positioning to the Hercules is now scheduled for
completion during the second quarter of fiscal 1998 with an
estimated cost of $15.0 million, which is in addition to the
approximately $50.0 million previously spent.
Long-term debt outstanding at June 30, 1997 including current
maturities), consist primarily of $41.4 million of Title XI
bonds. Included in this amount are $20.3 million of bonds which
the Company issued during August 1996 to finance the construction
of two liftboats, a launch barge and a cargo barge. The
Company's outstanding Title XI bonds mature in 2003, 2005, 2020
and 2022, carry interest rates of 9.15%, 8.75% , 8.30% , and
7.25% per annum, respectively, and require aggregate semi-annual
payments of $0.5 million (until January 1998, when aggregate semi-
annual payments will be $0.9 million), plus interest. The
agreements pursuant to which the Title XI bonds were issued
contain certain covenants, including the maintenance of minimum
working capital and net worth requirements, which, if not met,
result in additional covenants that restrict the operations of
the Company and its ability to pay cash dividends. The Company
is currently in compliance with these covenants. The proceeds of
the 1996 Title XI bonds were placed in escrow pending completion
and delivery of the four vessels. During August 1997 the final
vessel is to be completed and delivered and the funds are
expected to be released from escrow.
In July 1997 the Company completed the acquisition of certain
assets and operations from Sub Sea International, Inc. for a
purchase price of $102 million. In addition, as noted above the
Company acquired the Seminole in June 1997. The cost of these
acquisitions was primarily funded by cash generated from
operations and borrowings of $77 million under the Company's
Credit Facility.
The Company maintains an $85.0 million revolving line of credit
("Loan Agreement") with a syndicate of commercial banks. The
revolving credit facility of the Loan Agreement is available
until June 30, 2000, at which time the amount available is
reduced to zero over two years. Borrowings under the facility
are unsecured bear interest at fluctuating rates, and are payable
on July 30, 2002. Continuing access to the Revolving Line of
Credit is conditioned upon the Company remaining in compliance
with the covenants of the Loan Agreement, including the
maintenance of certain financial ratios. At June 30, 1997, no
amounts were outstanding under the Loan Agreement and the Company
was in compliance with the covenants contained therein.
Funds available under the Company's credit facility and Title XI
bonds, combined with available cash, and cash generated from
operations, are expected to provide sufficient funds for the
Company's operations, scheduled debt retirement, planned capital
expenditures, and working capital needs for the foreseeable
future.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Company is involved in various routine legal proceedings
primarily involving claims for personal injury under the General
Maritime Laws of the United Sates and Jones Act as a result of
alleged negligence. The Company believes that the outcome of all
such proceedings, even if determined adversely, would not have a
material adverse effect on its consolidated financial statements.
Aker Gulf Marine filed suit against the company in the U.S.
District Court, Western District of Louisiana, Lafayette Division
in December of 1995 seeking $8.2 million in additional costs
believed by it to be owed because of change orders during
construction of the Pioneer and $5.0 million for disruption,
acceleration and delay damages. Under an agreement reached with
Aker Gulf Marine, Global was given clear title to the Pioneer in
exchange for $3.2 million and the posting of a $4.5 million bond
in favor of Aker Gulf Marine. Such amounts and release of the
vessel are without prejudice to each company's rights to pursue
claims against the other in pending litigation or otherwise. The
Company does not believe that Aker Gulf Marine's claims are valid
and is vigorously defending against them and does not believe
that ultimate resolution of the claims will have a material
adverse impact on the Company's financial statements.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
15.1 - Letter regarding unaudited interim financial
information.
27.1 - Financial Data Schedule.
(b) Reports on Form 8-K
During the quarter covered by this report the Registrant filed:
Current Report on Form 8-K dated July 31, 1997, reporting the
consummation of the acquisition of certain assets of Sub Sea
International.
Signature
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
GLOBAL INDUSTRIES, LTD.
By: /s/MICHAEL J. POLLOCK
___________________________________
Michael J. Pollock
Vice President, Chief Financial Officer
(Principal Financial and Accounting Officer)
August 14, 1997
EXHIBIT 15
August 13, 1997
Global Industries, Ltd.
107 Global Circle
Lafayette, Louisiana 70503
We have made a review, in accordance with standards established
by the American Institute of Certified Public Accountants, of the
unaudited interim financial information of Global Industries,
Ltd. and subsidiaries for the periods ended June 30, 1997 and
1996, as indicated in our report dated July 31, 1997; because we
did not perform an audit, we expressed no opinion on that
information.
We are aware that our report referred to above, which is included
in your Quarterly Report on Form 10-Q for the quarter ended June
30, 1997, is incorporated by reference in Registration Statement
Nos. 33-58048 and 33-89778 on Form S-8.
We also are aware that the aforementioned report, pursuant to
Rule 436(c) under the Securities Act of 1933, is not considered a
part of the Registration Statement prepared or certified by an
accountant or a report prepared or certified by an accountant
within the meaning of Sections 7 and 11 of that Act.
DELOITTE & TOUCHE LLP
New Orleans, Louisiana