EXHIBIT 99
NEWS RELEASE
For further information contact:
Dailey J. Berard Pete Roman
Chief Executive Officer Chief Financial Officer
(318) 367-8291 (318) 373-5506
FOR IMMEDIATE RELEASE
Friday, April 30, 1999
UNIFAB INTERNATIONAL, INC.
ACQUIRES OIL BARGES, INC.
New Iberia, Louisiana - UNIFAB International, Inc. (NASDAQ-UFAB) announced
today that it has completed its acquisition of Oil Barges, Inc. ("OBI"). OBI
designs and fabricates drilling rigs from its 22-acre facility in New Iberia,
Louisiana. OBI is completing a first-of-a-kind drilling barge for an
international drilling company, which will be utilized in Nigeria. This
drilling rig, scheduled to be delivered in June 1999, incorporates OBI's
proprietary substructure technology, which makes it uniquely suited to address
some of the problems encountered in oil and gas production in Nigeria, and has
applications worldwide. OBI furnished all design, fabrication and equipment for
the drilling rig and 84-man living quarters, including equipment that had been
renovated at the Company's refurbishment facility in Parks, Louisiana. Superior
Derrick Services, a wholly owned subsidiary of OBI also obtained in the
acquisition, manufactured the 1.5 million-pound hookload mast used on the
drilling rig. The purchase price was approximately 490,000 shares of UNIFAB
International, Inc. common stock. UNIFAB also acquired equipment and machinery
from an affiliate of OBI for 210,000 shares of UNIFAB International, Inc.
common stock.
"OBI broadens UNIFAB's base as a single-source supplier," said Dailey J.
Berard, President, Chairman and CEO. "The expert management and proprietary
technology OBI brings into the UNIFAB family are well recognized in the
industry. The benefits of OBI's new drilling rig designs and technologies will
contribute to productivity and facilitate development of reserves previously
considered uneconomical. Adding the drilling rig fabrication facility enhances
UNIFAB's ability to provide complimentary specialized services, including
posted and platform drilling rigs that can be manufactured or refurbished at
the OBI facility at the Port of Iberia, and jack up rig and semi-submersible
rig refurbishment at our deep water facility in Lake Charles, Louisiana. The
OBI facility is one of the finest at the Port of Iberia. It provides ample
covered shop facilities, concrete bulkheading and currently employs
approximately 120 skilled craftsmen and other personnel. In addition we
continue to add seasoned management experience, marketing networks and
complementary industry expertise which will help us aggressively manage our
growth. We expect to integrate OBI into the UNIFAB family of companies. We now
offer single-source design and fabrication capabilities for production and
process equipment systems, packages and topside platforms, and state-of-the-art
drilling rig design and fabrication. This allows us to be properly positioned
to capitalize on the turn around that now appears to be materializing in the
industry."
OBI recognized revenue and pretax income of $28 million and $1.2 million,
respectively, for the year ended December 31, 1998. The acquisition will be
accounted for as a purchase. OBI will operate as a wholly owned subsidiary of
UNIFAB International, Inc.
UNIFAB fabricates and assembles jackets, decks, topside facilities, quarters
buildings, drilling rigs and equipment for installation and use offshore in the
production, processing and storage of oil and gas. Through a wholly owned
subsidiary, Allen Process Systems, LLC, the Company designs and manufactures
specialized process systems such as oil and gas separation systems, gas
dehydration and treatment systems, and oil dehydration and desalting systems,
and other production equipment related to the development and production of oil
and gas reserves. Allen Process Systems, LLC also provides a full complement of
engineering and field commissioning services related to production systems. The
Company's main fabrication facilities are located in the Port of Iberia at New
Iberia, Louisiana. Through a wholly owned subsidiary, UNIFAB International
West, LLC, the Company provides repair, refurbishment and conversion services
for oil and gas drilling rigs and industrial maintenance services. Through a
wholly owned subsidiary, Allen Process Systems, Ltd., headquartered in
Wimbledon, England, the Company provides engineering and project management
services primarily in Europe and the Middle East. Dailey J. Berard serves on
the Louisiana Workforce Commission and other task forces that are working to
improve the training and education of the workforce of Louisiana.
Statements made in this news release regarding UNIFAB's expectations as to
future operations of UNIFAB, its subsidiaries and OBI and other statements
included herein that are not statements of historical fact are forward-looking
statements that depend upon the following factors, among others: continued
demand for the services provided by UNIFAB and its subsidiaries and OBI,
availability of skilled employees, and UNIFAB's ability to integrate and manage
the acquired business. Should any of these factors not continue as
anticipated, actual results and plans could differ materially from those
expressed in the forward-looking statements.