This is very much again the case in Brazil. We are very fortunate to have established here a unique center of excellence, and we have, under the sponsorship of A&P working with multiple operators that have joined us into a joint development program where we are deploying and we will soon deploy everything from subsidiary to septic valve to flow control valve, fully electric, that would change the game and creating a new step.So that’s differentiated. With differential obviously are processing, boosting and processing capability. You remember the award that we got last year into Shell for gas processing subsea equipment into a large installation in — and you have seen two awards this quarter in Brazil, highlighting our boosting capabilities.So we’re unique into that position.
And again, ability we have to integrate processing equipment subsea with the rest of equipment well or surface is unique. And that’s something that is adding to our digital capability as well.So when it comes to the announced JV, I think we are seeing the process of going to the regulatory bodies in different parts of the world so I cannot comment any further than what we commented earlier. This is an exciting outlook, exciting opportunity. But until close, we’ll move forward.Arun Jayaram Great. Olivier, my follow-up. You and the Board are in Rio this week. I was wondering if you could characterize on what you’re seeing on the ground in terms of the upstream spending picture. And obviously, we’ve had a regime change recently with the new administration.
Are you seeing any potential changes to the fiscal or regulatory regime that could impact spending over the next couple two, three years?Olivier Le Peuch If anything, this visit has been outstanding, outstanding for the Board, outstanding for engagement we have customers and clearly highlighting the potential of Brazil to be fulfilling a significant supply growth. In the future, as I said, A&P and Brazil has ambition to reach or exceed 4 billion barrel from 3.3 billion today, I mean, on barrel per day. And they have already laid out the foundation of this of both production enhancement into the basin, the basin or the land basins and accelerating — continue to accelerate the development of the sub-salt deepwater with up to 20 FPSO already into the play.So I think they also are pushing forward to the next frontier.
They are about to explore Ecuador margin that give us another leg, if you like, of Brazil growth in the future beyond the already committed multi-year FPSO contract that are in place.So we don’t see any change. If anything, we see an acceleration and extension of the duration of this Brazil outlook. And if I had to highlight one noticeable change that I’ve seen, a commitment to decarbonize, a commitment to digitalize that I think is the new — the leadership is recommitted to. We have seen it and you will see it in the future. Digital operation will accelerate in Brazil by the main operator here. And the country will accelerate this commitment to CCS.We are very fortunate to be on the first and only bioenergy CCS project in Latin America with FS Bioenergia.
And we met the team two days ago, and they are very pleased the progress we are making on the CCS product in Brazil. So you will see more activity and no slowdown, but any upside — only upside to the offshore environment and then a low carbon and digital transition accelerating as well.Arun Jayaram Great. Thanks for the detailed comments.Olivier Le Peuch Thank you.Operator Next, we go to Neil Mehta with Goldman Sachs. Please go ahead.Neil Mehta Good morning, team. First question was around cash flow and working capital specifically was a bigger outflow than we had modeled in the quarter. Does that all reverse over the course of the year and you could talk about some of the moving pieces around that?Stephane Biguet Sure, Neil. So yes, it does reverse.
As you know, Q1 is always the lowest quarter of the year for free cash flow. As mentioned, we have the typical working capital buildup. Particularly, we have the payout of annual employee incentives. This is a one-off. It was about $500 million in the first quarter. And then we build inventory for anticipated growth, particularly in the Production System division, as we’ve mentioned.So even though it was — it remained negative, the free cash flow actually came slightly ahead of our own expectations. Our DSO was the lowest historically for a first quarter so we were quite happy with that. So yes, it will increase in the second quarter and it will accelerate in the second half on higher EBITDA, continuous capital discipline and working capital unwinding.Keeping in mind, we typically generate the majority of our annual cash flow in H2, but it will increase materially in Q2.
So when you put it all together, the 2023 full year free cash flow will be significantly higher than last year. And clearly, on the trajectory to deliver the 10% free cash flow margin we committed for the 2021 to 2025 period. And just to close, this will allow us to, as Olivier mentioned and as I mentioned in my prepared remarks, to return $2 billion to shareholders in the form of dividend and buybacks together.Neil Mehta That’s really helpful. The follow-up is just the margins at Digital. I think it’s hard to isolate because of some of the volatility around APS. Can you give us a sense of how you’re seeing the underlying margin trends at the core Digital business? And in Q2, that segment margin progression, I would imagine, strengthens as you work through some of these Ecuador challenges.Olivier Le Peuch Yes.
So as a reminder for everyone, I think our Digital & Integration division, I think, comprise and combines digital and exploration data with our Asset Performance Solutions. So at the onset of our digital journey, we have set clear ambition for Digital margin to be highly accretive to SLB, at the same time, to accelerate growth to double our revenue from ’21 to ’25. We are on that journey and clearly delivering a very accretive margin to SLB.So now we have demonstrated in the last few quarters last year that we — when we leverage best performance in APS and our differentiated digital offering, we deliver DLM margin visibly in excess of 30%. Now notwithstanding similar setback as we had material setback in APS ambition for D&I as a combination is to continue to deliver highly accretive margins, certainly in the 30s.So going forward, we expect the margins of D&I to sequentially improve based on the very solid revenue growth from Digital and very accretive margin for digital, combined with a return of growth for APS and returning a decent margin for APS.
So as a whole, we’re expecting to not only revenue increase but margin expand in sequentially and to continue to be accretive — highly accretive for the rest of the year.Neil Mehta All right. Great. Thanks team.Olivier Le Peuch Thank you.Stephane Biguet Thank you.Operator Next, we go to the line of Scott Gruber with Citigroup. Please go ahead.Scott Gruber Yes, good morning.Olivier Le Peuch Good morning, Scott.Scott Gruber Good morning. Olivier, you mentioned the resurgence in exploration, which is great to hear for SLB. One concern out there though is the potentially limited number of experienced geologists across the customer base to prosecute the exploration programs just because G&G departments were definitely scaled down during the pandemic.
Is this a legitimate constraint on the strength of the exploration cycle? Or is this capability being rebuilt across the industry? What are you seeing on that front?Olivier Le Peuch No, I will not be overly concerned by this. I think there are two factors that are playing into this. The first at Digital, I think, is having a significant productivity gain for processing, analyzing and generating prospects, as we call it, from — from modeling, from structural modeling to prospect identification, the seismic data set as well as the capability to process using digital capability has significantly improved. So the ability to create spotlight on the gas line or the oil pools, I think, is better than it’s ever been and certainly much better than last cycle.And secondly, I think there is a significant service consulting capability that we participate into that can help complement and provide support to our customers.
