Global Industries 1Q Results
Global Industries, Ltd. (NASDAQ:GLBL) announced revenues of $269.5m for the first quarter of 2009 compared to $301.5m in the first quarter of 2008. Net income was $19m, or $0.17 per diluted share, for the first quarter of 2009 compared to $26.1m, or $0.22 per diluted share, in the first quarter of 2008.
Commenting on the first quarter results, Chairman and Chief Executive Officer John A. Clerico stated, "We continue to make progress on our recovery plan at Global, and I am pleased to report that we returned to profitability in the first quarter. Although we experienced additional deterioration in our Camarupim project, this was more than offset by successful project execution elsewhere and the impact of our continuing cost reduction efforts. Industry conditions remain challenging, and we are focused on proactive cost control, effective project management and delivery of solutions for customers in order to continue to improve our performance.
“During the first quarter of 2009, our company booked $143.8 million of new work resulting in a backlog of $394 million as of March 31, 2009,” Clerico stated, "We are wrapping up our current project in Nigeria and have no booked projects for our West Africa Business Unit in our current backlog. Consequently, we have made the decision to curtail our operations in West Africa in an effort to minimize the impact on our operating results. We shall continue to evaluate the West Africa region for prospective future projects and re-enter that market if viable, profitable projects make it feasible to do so."
Revenue for the first quarter of 2009 included major project pipeline repair and replacement work in Nigeria, pipeline repairs in Mexico, pipeline installation off the West Coast of India, the Berri and Qatif project in Saudi Arabia, and the Camarupim project in Brazil. North America Subsea activity consisting of smaller projects and dive support services also contributed to revenues for the quarter. The Camarupim project incurred additional cost to complete due to the necessity to hire a third party dive support vessel and saturation system.
Selling, general and administrative expenses of $19.9m for the first quarter of 2009 decreased by $3.2m over the same quarter last year, due to company-wide cost control activities. Interest income of $0.6 million for the first quarter of 2009 decreased by $6.2m over the same quarter last year primarily due to substantially lower interest rates and decreased cash balances.