GLOBAL INDUSTRIES LTD

GLOBAL INDUSTRIES LTD

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Company Overview
Global Industries Ltd, with headquarters in Carlyss, Louisiana, is a US-based company engaged in the provision of offshore construction, engineering and support services including pipeline construction, platform installation and removal, and diving services to the oil and gas industry in the Gulf of Mexico, West Africa, Asia Pacific, Middle East/India, South America, and Mexico’s Bay of Campeche. The company’s shares are traded on the NASDAQ Global select Market under the symbol “Glbl.” The company was founded in 1973 as Global Divers.
In December 2006, the company’s fleet included fourteen major construction vessels, three cargo launch barges, ten dive support vessels (DSVs), and one other miscellaneous offshore support vessel. All of these vessels, with the exception of a newly delivered DSV which was idle during initial rig up, were used in productive service for the company in 2006. Its major construction vessels, which include eleven barges, two ships, and one small waterplane area twin hull (SWATH) vessel, have various combinations of pipelay, pipebury, derrick, and dive support capabilities. Its DSVs include two large, newly-built vessels which were delivered to the company during 2006 under long-term charter agreements.
Global is a leading provider of offshore construction services in the Gulf of Mexico, West Africa, Asia Pacific, Middle East/India, South America, and Mexico’s Bay of Campeche. The company’s mission is to help ensure the delivery of energy to the world while safeguarding its people and maximizing its profitability. Its vision is to become the preferred provider of marine construction services and the employer of choice.
Global’s business consists of two principal activities: offshore construction services, which includes pipeline construction and platform installation and removal services; and diving services, which includes diving and marine support services. The offshore construction services include pipelay, derrick, and related services. The company is involved in installing steel pipe by either the conventional or the reel method of pipelaying using either manual or automatic welding processes. Demand for diving services covers the full life cycle of an offshore oil and gas property, including supporting exploration, installing pipelines for production and transportation, performing periodic inspections of pipelines and platforms, performing repairs and maintenance to pipelines and platforms, and, ultimately, performing salvage and site clearance services. The company operates seven fleet of five DSVs domestically and five DSVs internationally.
Global’s customers are primarily oil and gas producers and pipeline companies. During the year ended December 2006, the company provided offshore marine construction services to approximately eighty customers. Its largest single customer in any one of the last three years, Petroleos Mexicanos (PEMEX), accounted for 40% of consolidated revenues in 2006.
Business Summary
Global Industries, Ltd. provides construction 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. As of December 31, 2009, its fleet included eight derrick lay barges (DLBs), one heavy lift ship, one pipelay barge, four multi-service vessels (MSVs), three dive support vessels (DSVs), one offshore supply vessel (OSV), and one cargo barge. The Company’s business consists of two principal activities: Offshore Construction Services, which include pipeline construction and platform installation and removal services, and Subsea Services, which include diving and diverless intervention, subsea equipment, umbilical, riser, and flow line (SURF), and support services for construction.
Description and history
Global Industries, Ltd. provides construction 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. As of December 31, 2009, its fleet included eight derrick lay barges (DLBs), one heavy lift ship, one pipelay barge, four multi-service vessels (MSVs), three dive support vessels (DSVs), one offshore supply vessel (OSV), and one cargo barge. The Company’s business consists of two principal activities: Offshore Construction Services, which include pipeline construction and platform installation and removal services, and Subsea Services, which include diving and diverless intervention, subsea equipment, umbilical, riser, and flow line (SURF), and support services for construction.

The Company’s construction vessels, which include nine barges and one ship, have combinations of pipelay, pipe bury, derrick, dive support and deepwater lowering capabilities. It is an offshore construction company, offering a range of marine construction and support services in the North America, Latin America, West Africa, Middle East, and Asia Pacific/India regions. It is equipped to provide services for shallow water to water depths of up to 10,000 feet. The Company’s conducts its worldwide business in six segments: North America Offshore Construction Division, North America Subsea, Latin America, West Africa, Middle East, and Asia Pacific/India. The Company’s customers are primarily oil and gas producers and pipeline companies. During the year ended December 31, 2009, it provided offshore marine construction services to approximately 60 customers.

Offshore Construction Services

The Company’s offshore construction services include pipelay, derrick, project management, and related services. It is capable of installing steel pipe by either the conventional or the reel method of pipelaying using either manual or automatic welding processes. The Company has the ability to install pipelines using the conventional method in the United States Gulf of Mexico, Latin America, West Africa, Middle East, and Asia Pacific/India. The Company is also capable of installing pipelines using the reel method of pipeline construction. The pipeline construction services that the Company performs by the reel method are primarily performed in the United States Gulf of Mexico. The Company’s construction vessels are equipped with cranes designed to lift and place equipment into position for installation. Seven of these vessels are capable of lifts of 500 tons or more.

Subsea Services

The Company operates a fleet of three DSVs and four MSVs. It also has two 200-horsepower work class ROVs that can operate in water depths up to 10,000 feet. In 2009, it began construction on two saturation diving systems. For subsea projects involving long-duration and deepwater dives, the Company uses saturation diving systems that maintain an environment for the divers at the subsea water pressure at which they are working until the job is completed. As of December 31, 2009, it had 10 saturation diving systems available for use. It utilizes wet underwater welding techniques in its Subsea Services. Underwater welds are made by two methods: dry hyperbaric welding and wet welding.

The Company competes with Acergy S.A., Allseas Marine Contractors, S.A., Clough Limited, Dynamic Industries, Inc., J. Ray McDermott, S.A., Leighton International, Saipem S.p.a., Subsea 7, Technip, S.A., Swiber Holdings Limited, Helix Energy Solutions Group, Inc., Cal Dive International, Bisso Marine Company, Chet Morrison Contractors, Inc. and Offshore Specialties Fabricators, Inc.

Founded as Global Divers

Business Line
Engaged in the provision of offshore construction, engineering and support services including pipeline construction, platform installation and removal, and diving services
Subsidiary
GIL HOLDINGS LLC
Advisor
DELOITTE & TOUCHE LLP
IPO date
3/1993
US SIC Code
1389
Company Address
8000, Global Drive

City province or state postal code
70665, CARLYSS, LA
Phone: +1 337 583 5000
Fax: +1 337 583 5100
Country address: UNITED STATES OF AMERICA
Website url: www.globalind.com