David Anderson: Obviously, all things that your customers are looking to achieve. If I could shift over to your digital business. Just more specifically, digital within D&I. APS has been kind of noisy this year between Canada and Ecuador. Kind of hard for us to get a real sense as to what’s happening in software. In your release, you talked about higher sales or margins. I was wondering if you could provide a little more context around that. Have margins improved from a year ago? Is it necessarily about margins? You just gave some interesting statistics about increasing number of users, increasing computing time, and you also said 60% growth. Can you just repeat exactly what you meant by that? Is that the top line of that business? Thank you.
Olivier Le Peuch: Yes. I think we — thank you, James (sic) [David]. I think we continue to be very positive about the digital business and its adoption with our customers. You will continue to see announcement being made from workflow and adoption for customers and also more and more announcement of digital operation, edge, AI, as you have seen many of them into our press release earlier today. So we are very satisfied with the momentum. And it’s going, it’s going fairly well. I think you are seeing that we have quoted that the new technology digital portfolio from workflows to operation is growing at a CAGR of about 60%. And I think this is in line with what we expected. And this is on top of the baseline that includes the legacy software maintenance and all the services, including the data sales that we do, that is somehow offsetting some of this, but still represents total growth.
So we expect this growth to be very visible into the fourth quarter as we typically have a year-end sales effect. And we continue — we expect this to continue and accelerate actually next year.
David Anderson: Thank you very much.
Operator: Next, we move to the line of Scott Gruber with Citigroup. Please go ahead.
Scott Gruber: Yes, good morning. Question on …
Olivier Le Peuch: Good morning.
Scott Gruber: … the Production Systems outlook for margins post the Aker JV. Just how should we think about the path forward for margins in the business? I’m thinking about legacy contracts in Subsea rolling out that are largely lower margin, better price contracts rolling in. And then as you capture synergies, just what is a reasonable expectation for incrementals or where margins could go overall in Production Systems out over the next 2 years?
Olivier Le Peuch: I think, Scott, simply said, we believe that we’ll continue to have — continue our journey of margin expansion. As you have seen, we have reached the highest level of margin in Production Systems since we have been reporting this division on the back of rolling in contract that in the backlog into revenue generation that are more accretive than the previous contract and at the results of not only the pricing environment that is more positive, but also the result of better supply chain and increased efficiency and use of additional technology that I think the entire team in Production System has been very good at selling to our customers. And I think, hence, the results now very specifically to the Subsea environment and the OneSubsea, we have been, a few months back, highlighting that our performance on Subsea is already in high teens as in previous or organic OneSubsea.
The addition of the — we expect to continue to and to recoup this margin and long-term continue to increase at this level and beyond. At Subsea, we will generate $100 million from year three on this OneSubsea joint venture going forward. So all in all, I believe that the element of our Production System portfolio are set to continue to not only grow, but also have incremental margin going forward. Hence, we expect the journey of margin expansion to continue next year and beyond. And the JV will be accretive to this.
Scott Gruber: Got it. And then turning to North America, a couple of years ago, you tilted your sales model towards more product sales and fewer boots on the ground. But now we’re going through a wave of consolidation amongst your customers. We’re seeing more privates taken out and now potentially a wave of larger mergers. How does that impact your strategy in North America?
Olivier Le Peuch: I think we have been very satisfied with the onset of our strategy and the deployment of strategy as we initiated it 4 years ago. I think we have turned out to be both appealing to the adoption of our technology products through partners, through this fit-for-basin and tech access model as well as our focused technology and focused fit-for-basin offering has been resonating with large public integrated company that have adopted our technology for performance purpose. As the market mature and as some consolidation will happen, we still believe that our technology performance, including impacts recovery. Digital will continue to resonate very well and will continue to be adopted very well by our customers. So we have an excellent exposure at this point to the public and integrated company.
And I think this consolidation will give us opportunity to further showcase our technology, showcase our digital, showcase our fit-for-basin across both Production System and drilling well construction, in particular. And let’s not forget that CCS is a new exploration world in NAM, this is also playing a critical role to our growth to through [indiscernible] performance and evolution portfolio is not Digital in that context. So we will continue to use tech access and fit-for-basin to be agile in this market to respond to the privates [ph] that are set to come back next year. And at the same time continue to engage with our larger customer and the customer that are at the top of our portfolio through technology and integration capabilities. So we are — we believe we are set for success in this new mature market in NAM.
Scott Gruber: [Indiscernible]. Thank you.
Olivier Le Peuch: Thank you.
Operator: Next, we move on to Arun Jayaram with JPMorgan Chase. Please go ahead.
Arun Jayaram: Yes, good morning. I was wondering, Olivier, if you and Stephane could elaborate on kind of the margin performance in the core. In particular, you commented about pricing gains, particularly in Reservoir Performance. If you could highlight what you’re seeing on pricing. And excluding, obviously, the impact from the close of the OneSubsea JV, would you expect similar margin expansion in the fourth quarter on a — for the legacy SLB?
Olivier Le Peuch: So let me start. I will let Stephane comment on the margin because I believe he provided some remarks to that effect. First, I believe that the core is benefiting from three things, in my opinion. It benefits from differentiated performance in the eyes of the customer, and hence, is benefiting by this creating an opportunity to secure market position and commands a pricing premium or favorable commercial terms to support this performance. Performance is recognized. Performance is critical in all projects, but in deepwater environment and is something that differentiates us and it’s being recognized. So performance is a key factor. The second, I believe, is technology. Technology adoption has been accelerating.
