I think the target and the basket of technology we have set this year, including the transition technology where we set a target for $1 billion for the year, has already been achieved year-to-date. And hence, we see technology adoption as being unique in this environment, has differentiated again on performance and differentiated on creating insight and features and differentiate the value for customer and being recognized. And that is accretive to the margin and that drives our margin in the core. Finally, integration, and I will put digital into this, the ability to intertwine and add digital capability to our integration has delivered value. And you see that the Well Construction is benefiting from high-level margin that are very much helped by integration and digital as well as performance.
Back to Reservoir Performance. Reservoir Performance had a very strong quarter on the back of result performance evaluation, which is used in exploration appraisal particularly where our differentiated technology portfolio has, again, been recognized with a premium. So that is what we are benefiting from. Technology, performance and integration with digital are driving a differentiated value proposition recognized with a pricing premium with our customers.
Stephane Biguet: And relating to margins, Arun, for Q4, yes, we do expect excluding the effect of the Aker Subsea contribution to continue expanding margins, particularly the digital and integration margins will definitely improve from accretive year-end digital sales so that will clearly be a tailwind. And then we will have probably improved margins, I’d say, across the other divisions, particularly in Production Systems where we have typically year-end sales that bring good incrementals. So yes, continuous margin expansion, excluding the JV in Q4.
Olivier Le Peuch: And you could expect this to carry on in 2024 as we believe the attribute of differentiation, as I outlined before, and the favorable environment which we are operating partly internationally will continue to support margin expansion for the core.
Arun Jayaram: Great. My follow-up, Stephane, $1 billion of free cash flow generation in 3Q. Any thoughts on what could impact free cash flow in 4Q, just given working capital and just the OneSubsea JV? Just any things to flag?
Stephane Biguet: Sure, sure. So first, we are actually quite pleased with our free cash flow performance so far this year. It’s indeed the second quarter in a row where we generate about $1 billion free cash flow. And it’s really a combination, of course, of higher EBITDA, but also discipline in capital investments and an improved working capital performance quarter-after-quarter. So relating to Q4, we typically see a strong end of the year as it relates to free cash flow. So we are hoping that it will be the case this year as well. There are always moving targets based on customer collections. It’s the main variability. But in general, we expect a strong free cash flow performance as we close the year.
Arun Jayaram: All right. Thanks gentlemen.
Olivier Le Peuch: Thank you.
Operator: Next, we move on to Marc Bianchi with TD Cowen. Please go ahead.
Marc Bianchi: Hi. Thank you.
Olivier Le Peuch: Good morning, Marc.
Marc Bianchi: Good morning. You previously discussed an expectation for directionally $1.5 billion of EBITDA improvement in 2024. I’m curious what the underlying assumption for the JV is here, just so we can get a sense of how it’s doing versus the what appears to be the fourth quarter run rate here.
Olivier Le Peuch: I don’t think we will, at this point, comment specifically on next year. I think it’s — directionally, I think it’s an indication that we gave. I think the market, as it stands today, we have under a scenario of international growth momentum and also North America coming to a year-on-year growth activity. I think we see a scenario by which indeed this guidance we gave on this scenario we outlined will materialize. But I will not go into the detail at this point until our Q4 conference call in January and until we have time to triangulate some of our expectations with the customer engagement. We will come back with more detail, including the contribution we expect for the JV Subsea at that time.
Marc Bianchi: Okay. Thank you. The — another question on offshore, but specifically related to exploration. I think you earlier said that you expect 20% type growth in ’23. I’m curious how that’s playing out. And then can you remind us how large exploration is for SLB?
Olivier Le Peuch: We don’t comment on exploration because exploration, I think, is an — as a subset of market segmentation, touch many aspects, I think, primarily Reservoir Performance, but also digital, some of them are integration and obviously, some components of some PS and Well Construction. So all in all, we believe that the exploration appraisal market has been aligned with the international growth this year and I think has been an element of offshore momentum that has been set this year. I think the results of — and margin that we have seen from the performance are very much a reflection of that success. We are seeing success as well in our digital sales when it relate to data exploration. And we are seeing that the campaign of appraisal that have been made around Africa, particularly continuing to be sustained and in the search of confirming these finds and to develop FID in ’24, ’25.
