Global Industries Names New CEO; Reports 2009 Results
Global Industries announced the appointment of a new Chief Executive Officer and results for the fourth quarter and year ended December 31, 2009.
The Company announced that John B. Reed, Jr. has been named Chief Executive Officer of the Company, effective March 2, 2010. Mr. Reed will also become a Director of the Company effective on the same date. John A. Clerico will continue to serve as Chairman of the Board to ensure a smooth transition.
Mr. Clerico stated, "On behalf of our entire Board of Directors, I am very pleased to welcome John Reed to Global Industries. His industry knowledge, operating experience and proven leadership capabilities make him an ideal candidate to lead the Company. In addition to improving Global's position in our traditional offshore marine services markets, John has the vision and skills to lead Global in the deepwater market with our new Global 1200 and Global 1201. I know he will receive strong support from the entire Global team."
John Reed joins Global with more than thirty years experience in the offshore construction industry. Most recently, he served as Chief Executive Officer of Heerema Marine Contractors after holding a number of other senior roles with the Heerema Group including Chief Executive Officer of INTEC Engineering, Inc. He previously held a number of other management roles at Heerema in project management, business development and engineering capacities. He holds a Bachelors degree in Engineering from the University of Mississippi and an MBA from Delta State University. Mr. Reed previously served as a member of the Board of Directors of the National Ocean Industries Association, is a past President of the International Pipeline and Marine Contractors Association and past Chairman of the International Marine Contractors Association, America's Deepwater Division.
With respect to the results for the fourth quarter of 2009, revenues were $146.3 million compared to $250.4 million for the fourth quarter of 2008. Net loss was $5.3 million, or $0.05 per diluted share, for the fourth quarter of 2009 compared to a net loss of $28.1 million, or $0.25 per diluted share, for the fourth quarter of 2008.
Revenues were $914.3 million in fiscal year 2009 compared to $1.07 billion in fiscal year 2008. Net income was $73.7 million, or $0.64 per diluted share, in fiscal year 2009. This compares to a net loss of $119.2 million, or $1.05 per diluted share, in fiscal year 2008.
Commenting on the fourth quarter results, Chairman and Chief Executive Officer John A. Clerico stated, "The winter seasonal downturn, as well as continued delays and postponements of new offshore oil and gas projects, have impacted our fourth quarter results. We have taken proactive steps to cut costs in an effort to better align the cost of our operations with our revenues, which include stacking idle vessels and seasonal layoffs. We are committed to winning business, increasing our project backlog and successfully executing projects for our customers. While our order backlog declined from last year's level of $519.7 million to $103.8 million at the end of 2009, we were successful in booking an additional $91.4 million of new work during January, 2010. Our plan for 2010 is to aggressively and strategically pursue new projects in our niche markets. While we have substantially completed our cost cutting activities, we shall continue to proactively implement cost control measures to appropriately size our operations, as needed.
Mr. Clerico further stated, "We are pleased to also announce that our and the Government's investigation of our activities in West Africa have concluded without any fines or penalties being imposed upon the Company. Both the DOJ and SEC have concluded their investigations and are not recommending any enforcement actions against the Company. We remain committed to conducting our operations in an ethical fashion and in compliance with applicable laws."
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