Gulf Island Fabrication — Investor Presentation (August 2022)
40 slides from Gulf Island Fabrication's investor presentation, Aug 17, 2022
Slide 1: Investor Presentation August 2022
Exhibit 99.1 nea GULF ISLAND INVESTOR PRESENTATION August 2022
Slide 2: Cautionary Statements
Cautionary Statements rex GULF ISLAND BUILDING ON TRUST Cautionary Statements This presentation, including any oral statements made in connection therewith, contains forward-looking statements in which we discuss our potential future performance. Forward-looking statements, within the meaning of the
Slide 3: Company Overview
Ye} GULF ISLAND BUILDI ING ON TRUST COMPANY OVERVIEW
Slide 4: About Us
About Us fe} GULF ISLAND BUILDING ON TRUST 55 million million ~$41 million of total revenue for six months market capitalization cash balance ended June 30, 2022 at August 12, 2022 at June 30, 2022 Significant progress on Strategic Transformation has positioned Gulf Island to pursue Profitable Growt
Slide 5: About Us
About Us fe} GULF ISLAND BUILDING ON TRUST Strategic Operating Locations Experienced Labor Force ‘Shipyard _ zg _ Fabrication 618 + Gulf Island's primary operating and fabrication facility in Houma supports both + Non-union, skilled labor force capable of fabricating complex Fabrication and Services
Slide 6: Segment Overview
Segment Overview fe} GULF ISLAND BUILDING ON TRUST Operates Through Two Business Segments 4 Revenue Mix Fabrication Oil & Gas 28% aa - oil & Gas i SERVICES FABRICATION Industrial a Renewables Current mix reflects strength of & Services business and low volume of large fabrication projects. Anticipat
Slide 7: Services Division
Services Division fe} GULF ISLAND BUILDING ON TRUST seat se ig Scaffolding Coatings Specialty Stuns Welding Traditional Blasting/Painting Torquing/Tensioning Pump Stations Fitting SafeDeck Insulation Hydrotesting Levee Reinforcement Rigging Fireproofing Weld Isolation Bulkheads Equipment Operations
Slide 8: Services Past Projects
Services Past Projects rex GULF ISLAND BUILDING ON TRUST sine 34, Se, Maintenance & Decommissioning Offshore Hookup Launcher Skid installation in Hookup of a Tension Leg Platform Coating project on offshore Scaffolding installation on an connection with a subsea tie- atan offshore location. Faciliti
Slide 9: Fabrication Division
Fabrication Division fe} GULF ISLAND BUILDING ON TRUST Offshore O&G Offshore Wind Rolled Goods, Docks Subsealsticres Modules, Skids & Structures Structures & Terminals Piping Systems Jacket Foundations Jacket Foundations Piles / Monopiles PLETS/PLEMS Equipment Modules / Skids Decks Electrical Substa
Slide 10: Fabrication Past Projects
Fabrication Past Projects rez GULF ISLAND BUILDING ON TRUST Ethane Cracker Offshore Wind Onshore Gas Breasting Dolphin Modules Turbine Foundations Processing Module eB P 2,900-ton Secondary Quench Five 400-ton Jacket Foundations 1,000-ton Air Cooler module for Six Mooring Jackets & four Exchanger (S
Slide 11: Corporate Sustainability
Corporate Sustainability rex GULF ISLAND BUILDING ON TRUST Safet Astrong safety culture is a critical element of Gulf Island’s success, and the Company is y committed to the safety and health of its employees and subcontractors. * Gulf Island is a vital part of the local community, and the Company i
Slide 12: Safety
Safety fe} GULF ISLAND BUILDING ON TRUST 5-Year Safety Trend 140 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2018 2019 2020 2021 2022 YTD- 7/24/2022 — Total Recordable Incident Rate (TRIR) —— Lost Time Incident Rate (LTIR) 0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.04 0.00 + Average Total Recordable Incident
Slide 13: Supporting the Community
Supporting the Community fe} GULF ISLAND BUILDING ON TRUST Gulf Island Emergency Relief Fund * Hurricane Ida - Over 7,750 hot meals served to the Company’s workforce * Hurricane Laura - Over 3,000 hot meals served to the community Philanthropy and Community Involvement * Relay for Life in Terrebonne
Slide 14: Business Transformation
re, GULF ISLAND BUILDING ON TI BUSINESS TRANSFORMATION
Slide 15: Business Transformation
Business Transformation fe} GULF ISLAND BUILDING ON TRUST Legacy Gulf Island The New Gulf Island * Complex shipbuilding and fabrication contracts * Reliant on the cyclical marine and offshore O&G end markets * Heavily dependent on large, high-risk, fixed- price contracts * Multiple facilities with s
Slide 16: Transformation Phases
Transformation Phases rex GULF ISLAND BUILDING ON TRUST Legacy => The New PHASE ONE: PHASE TWO: Improve Liquidity Pursue Stable, and Operational Profitable Growth Performance In 2020 Gulf Island outlined a transformational strategy intended to improve the Company's liquidity and operational performa
Slide 17: Phase One - Improve Financial Strength and Operational Performance
PHASE ONE - Improve Financial Strength and Operational Performance rex GULF ISLAND BUILDING ON TRUST ¢ Reduce risk profile an strengthen liquidity * Improve resource utilization and centralize key project resources * Improve competitiveness and project execution Sold Shipyard operating assets and lo
Slide 18: Phase Two - Pursue Stable, Profitable Growth
PHASETWO - Pursue Stable, Profitable Growth rex GULF ISLAND BUILDING ON TRUST * Grow offshore customer base and broaden services offerings * Expand services offerings to onshore markets Grow and diversify SENSE * Acquired services business of Dynamic Industries (4Q21) business * Improve recruiting b
Slide 19: Shifting End Market and Contract Mix
Shifting End Market and Contract Mix rex GULF ISLAND BUILDING ON TRUST + LNG and Petro-Chem provide near-term growth opportunity for Fabrication as transition to target mix Infrastructure Other __ Infrastructure 3% Renewables 15% ce 25% + Renewable and infrastructure will drive — longer-term growth
Slide 20: Shipyard Wind Down
Shipyard Wind Down fe} GULF ISLAND BUILDING ON TRUST Two 40-vehicle ferries for One 70-vehicle ferry for Two multi-purpose supply vessels North Carolina DOT Texas DOT for Hornbeck Offshore * One ferry has been launched; * Ferry has been launched; expected * Contracts in litigation regarding expected
Slide 21: Key Investment Highlights
re, GULF ISLAND BUILDING ON TI KEY INVESTMENT HIGHLIGHTS
Slide 22: Key Investment Highlights
Key Investment Highlights rex GULF ISLAND BUILDING ON TRUST + LNG and Petro-Chem offer strong near-term growth for Fabrication Attractive End Markets + Renewables and offshore wind provide longer-term growth for Fabrication * High energy prices and labor constraints driving favorable Services trends
Slide 23: Attractive End Markets - Fabrication
1. Attractive End Markets - Fabrication rex GULF ISLAND BUILDING ON TRUST LNG Offshore Wind Renewable Energy iB Tew ES +40% cow 8 isto | proection 14 5 Ey scw = ae 4 renewables Zs a : 3cw [ zs | 2 alli gas : | aw 1 ‘ ee | l “em ; ea 2018 2017 2018 2019 2020 2021 20226 2028E 2023 2024 2025 2026 2027
Slide 24: Attractive End Markets - Services
1. Attractive End Markets - Services rex GULF ISLAND BUILDING ON TRUST driving robust offshore * DSS Acquisition brings stronger onshore * Increased customer base and suite of services provides opportunity to cross- sell services + Rising energy prices O&G activity resulting in strong offshore servi
Slide 25: Positioned For Growth
2. Positioned For Growth rex GULF ISLAND BUILDING ON TRUST Skilled Labor Force Strategic Location * Experienced and long tenured labor force is an + Located 30 miles from the Gulf of Mexico, important strategic advantage given labor Houma offers a strategic location that provides constraints direct
Slide 26: Positioned For Growth
2. Positioned For Growth rex GULF ISLAND BUILDING ON TRUST Strong execution drives Loyal Customer Base customer loyalty Z_™. - Chevron bp * High quality, diversified BAG es @ OXY Ammen YB Techninrc Pana Schlumberger customer base “ wa — * DSS Acquisition expanded ConocéPhilips. (MCDERMOTT, [HESS] =
Slide 27: Improving Margin Profile
3. Improving Margin Profile fe} GULF ISLAND BUILDING ON TRUST Reduced cost structure and exit of lower margin backlog Improved operational performance and C ) Volume more disciplined bidding Tecoyely e@ Grow value-add Growing Services platform provides more Selec stable, predictable margins 6 Grow S
Slide 28: Strong Balance Sheet To Support Growth
4. Strong Balance Sheet To Support Growth rez GULF ISLAND BUILDING ON TRUST Liquidity and cash position Cash balance of ~$41 No bank debt; surety Exited higher-risk, long-term allows Gulf Island to construction contracts pursue growth million at June 30, 2022 requirements reduced Monetized certain u
Slide 29: Experienced Management Team
fe} GULF ISLAND 5. Experienced Management Team BUILDING ON TRUST Richard W. Heo Westley S. Stockton PRESIDENT & CEO EXECUTIVE VICE PRESIDENT & CFO Joined Gulf Island in 2019 Joined Gulf Island in 2018 Previous Experience Previous Experience * McDermott International, Inc. - Senior Vice President of
Slide 30: Financial Overview
re, GULF ISLAND BUILDING ON TI FINANCIAL OVERVIEW
Slide 31: Second Quarter Summary
Second Quarter Summary fe} GULF ISLAND BUILDING ON TRUST Revenue of $35.9 million, up 48% from the prior year Revenue increased due to strong growth for Services, including the benefit of the DSS Acquisition. Fabrication revenue was down modestly as strong small-scale project work offset the weaknes
Slide 32: Second Quarter Performance - Services
Second Quarter Performance - Services fe} GULF ISLAND BUILDING ON TRUST Services Revenue Services EBITDA Services New Awards $ in millions: $in millions $ in millions: $222 saa. S20 $19.4 sua $103 964 O = Tr al 0 1921-2921. 3921. aQ2a. 1922 1921 2921) -3Q21. QS 1922 1921-2921 3Q21.4Q21. 1922 «©2922
Slide 33: Second Quarter Performance - Fabrication
Second Quarter Performance - Fabrication tei GULF ISLAND BUILDING ON TRUST Fabrication Revenue Fabrication EBITDA Fabrication New Awards $in millions $in millions $in millions F 0 a7 8 os doe $108 $15 gag a! w an = LU 4) ($3.0) 1g21 2921 «3921 4Q2t 19222922 3Q2t 2921 ©3922 get ©1922-2022 1921-2921 a
Slide 34: Second Quarter Balance Sheet and Liquidity
Second Quarter Balance Sheet and Liquidity rex GULF ISLAND BUILDING ON TRUST Total Cash Position Total Surety Bonds $ in millions $ in millions $546 $291.2 S128 $408 aga 1922 2922 4q20 Decrease in cash from the end of 2021 due to an expected post acquisition working capital increase for the acquired
Slide 35: Summary
Yel GULF ISLAND BUILDING ON TRUST SUMMARY
Slide 36: Summary
Summary re, GULF ISLAND BUILDING ON TRUST ¢ Progress on business transformation has * Growing Services business will provide created a stronger, more predictable improved visibility and result in a more business positioned for profitable growth stable and diversified business mix with higher margins
Slide 37: Appendix
APPENDIX Yel GULF ISLAND BUILDING ON TRUST 36
Slide 38: Financial Reconciliation
Financial Reconciliation rex GULF ISLAND BUILDING ON TRUST Services Segment EBITDA $n mitions 1g24 2924 gat 4921 1922 2922 Operating income S027 $129 = 090 $103 Ss is S234 ‘Add: Depreciation and amortization 0.16 0.44 044 ot 036 039 EBITDA S043 S143 S108 Ss i24 S155 $272 Fabrication Segment EBITDA i
Slide 39: Contact Information
Contact Information fe} GULF ISLAND BUILDING ON TRUST For questions or additional information please contact: Paul Bartolai, CFA 773.551.1795 paul.bartolai@val-adv.com
Slide 40: re, GULF ISLAND
re, GULF ISLAND BUILDING ON TRUST
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