COMPANY UPDATEOctober 2017Houston, Texas

2Copyright © Gulf Island Fabrication, Inc. All rights reserved.

Since 1985

Company Overview

• A leading fabrication, shipbuilding and construction services provider

• Founded in Louisiana in 1985 with an initial public offering in 1997 (NASDAQ:GIFI)

• Diversified international customer base – delivered some of the largest structures worldwide

• 2016 Financials: Revenues $286 million / EBITDA $26 million / Net Income $4 million

• Balance sheet - no debt / Working Capital $164 million

• Market Capitalization: $180 million (as of 10/24/17)

3Copyright © Gulf Island Fabrication, Inc. All rights reserved.

>>> 2016 Harvest• Project management

discipline• Income statement focused• Profitability• Diminishing upstream oil &

gas wave of investment• Shipyard acquisition /

expansion

2017/8 The “Pivot”• Market diversification• Backlog exhaustion / trough• Balance sheet management• Cash preservation /

breakeven EBITDA• Divestitures• Protect capabilities• “Price taker”• Rebuilding backlog

2019 Growth >>>>• Return to growth• Diversification / new

markets• Income statement focused• Profitability• Capacity constraints• Pricing leverage / margin

expansion• Shareholder returns• Capital investments

2017 – A Season of Transition…

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Upstream Oil & Gas

97%

Other3%

2011 Revenues by Market

Our transition into “other” non-upstream oil & gas markets

The Big Market Pivot

Upstream Oil & Gas

8%

Other92%

Future Revenues by Market

Upstream Oil & Gas

84%Other16%

2016 Revenues by Market

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Fabrication of complex steel structures for over 30 years

Our Capabilities

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Three segments with fabrication, installation and project management expertise to oil & gas, government and various other markets.

Diversification - Fab, Services & Ships

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Many first’s in the industry

A Leader in Offshore Fabrication

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Production platform topsides, jackets and piles

From Top (Topsides) to Bottom (Piles)

• Built for Walter Oil & Gas• 30,000 ton single-piece jacket• 1,250’ in length• 4,500-ton topsides

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Single-point anchor reservoir

1st SPAR Built in the U.S.A. – Tubular Bells

• 7,400-ton topside

• 603’ and 13,000-ton classic SPAR

• 50-POB Living quarters

• Skids and tieback

• On production in the Mississippi Canyon of the Gulf of Mexico in 4000’ water depth

• $300 million project

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Largest offshore fabrication capacity in the U.S.A.

Fabrication & Shipbuilding Facilities

Houston, TXCorporate Office

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Business Segment Drivers

• Chemical renaissance• Driving new petrochemical plant construction/expansion• Modular construction techniquesFabrication

• Plant-the-Flag Strategy on Fab’s coattails of new projects• >80% of spending occurs post-construction in

petrochemical plants• “…87% of an asset’s lifecycle costs are spent during the

operations phase; less than 13% is attributable to project execution costs (and only 8.7% construction)…”1

Services

• U.S. Jones Act enforcement• Strong shipping demand• Naval reconstruction; military/government• Petrochemical marine demand; product carriers• Offshore wind power service vessels

Shipyards

1“US Downstream Engineering, Construction & Maintenance Market Outlook 2017,” by Martina Asbury, Petrochemical Update, December 2016.

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The Shale Revolution in the United States is driving a Chemical Renaissance along the Gulf Coast with reliable and plentiful supplies of oil & gas product flowing from nearby basins.

Shale Oil & Gas Drives Petrochemical Plants

• “It’s a tectonic shift in the hemispherical balance of who makes what…,” said Dow Chief Executive Andrew Liveris

• “…the world’s appetite for plastics is expected to rise for decades to come.”

• “[according to PCI Wood McKenzie] The world consumed more than 147 million metric tons in 2016 of ethylene and will need more than 186 million tons by 2023 to meet global demand…”

- The Wall Street Journal, June 26, 2017

• ExxonMobil Corp.: World's largest ethylene cracker plant will be in South Texas; ExxonMobil Picks Corpus Christi for $10 Billion Ethylene Plant

• Low priced, abundant shale gas supply has created downstream manufacturing renaissance

• U.S. shale boom fueling chemical plant expansions: Exxon is growing the Gulf; Shell is growing the NE

- The Houston Chronicle, April 19, 2017

“…steady interest in new gas-fired power plants domestically (which typically range in size from $500MM to $700MM) …”

- Johnson Rice & Company, 5/22/2017

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Module Construction

Modular construction enables efficient utilization of off-site fabrication facilities, enables parallel tasks, reduces on-site risk for the customer and, ultimately, quicker plant startup.

The Shift to Modular Plant Construction

Design & Engineering Site Prep Stick-Building Onsite Commissioning

Design & Engineering Site Prep Module

Install Commissioning

PROJECT DURATION:

Serial Task Method = 6-8 Years to Startup

NEW Method with Parallel Tasks = 4-5 Years to Startup Time savings to begin facility startup can be

substantial.

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Source: management estimates; industry research.

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Upstream Project Managers now employed in petrochemicals are utilizing “offshore” engineering, project management techniques and modular construction

Petrochem Modules Drive Fabrication

September 2017 – SQE Unit for Lake Charles Ethane Cracker (CB&I/Axial Lotte)

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Legislation and public policy increasing demand for renewable energy supply with offshore wind providing an alternative to the east coast markets.

Offshore Wind Demand Fundamentals

The U.S. DOE expects offshore wind will produce 86 GW of power by 2050 - about 7% of America’s current electricity demand

23 Projects totaling 16 GW -equivalent to 16 nuclear power plants on the drawing board

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European and U.S. equity-backed and U.S. energy generators leading the way. Turbine installations require fixed and/or floating foundations along with an offshore service infrastructure.

Offshore Wind Demand & Participants

0

50

100

150

200

250

300

350

2015 2016 2017 2018 2019 2020 2021 2022

Offshore USA Wind Turbine Installations and Foundations Required

Sources: Statoil Hywind company information, management estimates.

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Offshore wind power projects are increasing and require similar structures as offshore upstream oil & gas Gulf of Mexico shelf projects and U.S. Jones Act service vessels.

America’s First Offshore Wind Farm

Source: “Wind Power Takes to the Seas,” by Brian Dumaine, Fortune, March 24, 2017 .

D.E. Shaw's Martin (in a blue shirt with raised fist), Jeffrey Grybowski, CEO of Deepwater Wind (center), Rhode Island Gov. Gina Raimondo (with thumb up), and others celebrate an early construction milestone at Deepwater's wind farm in 2015.Brian Snyder — Reuters

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Offshore wind power projects are increasing and require similar structures as offshore upstream oil & gas Gulf of Mexico shelf projects and U.S. Jones Act service vessels.

Deepwater Wind in Rhode Island

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A solution for marginal fields ~ supports 30,000 bpd of production

New Products – Flat Plate-30 SPAR FPS

• Pre-engineered

• Standardized

• Singled-sourced

• Quick-to-market (24 months)

• U.S.-built (Houma, LA)

• No overseas transportation

• Cost-effective @ $50 oil price

• Improved NPV & MIRR

Deepwater Solutions

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Proprietary design of technologically-advanced offshore supply vessels (completed February 2017)

Shipyard Credentials

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Craftsmanship and technical integration below decks (completed February 2017)

Shipyard Credentials

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Balance sheet-focused to prepare for period of sustained growth

Corporate Objectives in 2017

Capital Discipline:•Rationalize Assets - Divest South Texas Facilities•Develop Capital Deployment Strategy•No debt outstanding

Protect Liquidity:•New Credit Agreement in June 2017•Conserve cash•Disposition of underutilized assets

Enhance Organization:•Recruiting top talent to enhance team across the organization (corporate and operations)

•Organizational re-alignment

Re-Build Backlog:•Q2 2017 - Highest Reported Backlog since April 2014•Awards in New Markets outside of Upstream Oil & Gas (Oregon, New York)•Develop new marketing channels (renewables/offshore wind, petrochemical, transportation, government)

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Thank you!