Olivier Le Peuch: I think it’s early stage. I don’t think it’s — it will be appropriate to comment on the size of the opportunity. But surely, I think we have that historically very strong track record and set of capability in country that have been dominant since we had to shut down the operation. But as soon as and we get support from our partners-customers into this, we will be responding and as fast as we can with mobilizing resources and equipment that is over there to respond and participate to this opening. But it’s too early to say and it’s too early to give a guidance of any thoughts on the impact it will have, but its potential and its upside, if it comes, indeed.
Kurt Hallead: That’s great. Thanks. And I’ve got a follow-up. Just I know you referenced you expect Digital revenue to grow to be about $3 billion by 2025. Just kind of curious as to what contribution you think AI will have in that growth and whether or not the adoption rate of AI among your customer base gives you even greater conviction of getting to that level.
Olivier Le Peuch: Yes, indeed. I think for making sure that we are all aligned, we quoted that we expect the revenue of digital to double from ’21 to ’25 and to reach approximately $3 billion by ’25. And indeed, very much a component of what we call the new technology, digital portfolio includes our ability to unlock data insights through AI, the ability to create and imagine new workflow to AI into and to support a key element of digital operations like autonomous drilling through AI. And you will see very soon some announcement of industry first that have used automation and AI to enable this automation, to enable these new insights. So we are very positive about what AI can bring to this. We have a unique capability. We have domain AI capability embedded into our platform.
We have better IQ as a partner with ready-to-go portfolio of routines and AI capability that have been recognized as best-in-class and allowing our customers to rapidly unlock and use AI and scale AI into their application. And we have, for the last 1.5 years, launched our INNOVATION FACTORI which are labs that we use to collaborate for customers, and we have six of them across the globe, where we collaborate and we have more than 100 projects already achieved with our customers through this INNOVATION FACTORI. So a great pickup, and you may have seen during at APEC, we announced an AI project that we have released with our partners in the Emirates to support AI capability with ADNOC. So it’s all over the place. It’s in [indiscernible], it’s in planning, and it’s an execution in digital operations to [indiscernible] So it’s picking up, and it would indeed hopefully contribute and give us that opportunity in 2025.
Kurt Hallead: That’s great. Thanks for the color.
Olivier Le Peuch: You’re welcome.
Operator: And our last question will come from Roger Read with Wells Fargo. Please go ahead.
Roger Read: Hey, thank you. Good morning.
Olivier Le Peuch: Good morning.
Roger Read: Olivier …
Stephane Biguet: Good morning, Roger.
Roger Read: I’d like to come to it from a margin standpoint. I mean, your margins are pretty fantastic here for certainly where we are in the cycle and everything like that. When we look back to the up cycle and there’s still a ton of room to go, and I recognize this question may be premature relative to maybe an update when we are really looking more at ’24. But what do you see as things that could lift margins from here? What do you see things that would restrain margins from reaching sort of max levels? Or what would we need to see in the market fundamentals to make a significant uplift from margins here?
Olivier Le Peuch: I don’t want to, first, put a ceiling on the max on the margin we can achieve. I think the future and the market outlook will detect that. But most importantly, our ability to execute, to continue to execute on our performance strategy will continue to define our ability to capture, enhance our margin, whatever the market conditions are. And I think this is what we have been achieving for the last 4 years. And I think, again, technology differentiation, integration capability, augmented by digital and performance on everything we deliver is what is getting our customers trust us to give us premium and give us favorable commercial condition and further growth potential by better share of their business allocation.
So I think, again, we initiated and we telegraphed fairly well 3 years ago that we’ll be initiating a margin expansion journey. We have been on that journey for the last 3 years from the trough of 2020. We committed to expand. And I think we have delivered on this commitment. Some of you were looking forward to see when we will cross the 25%. Some of — some scenario we are putting this in 2025. We said we would likely be able to cross this before. It came slightly ahead of our expectation because I think I’m impressed by what our team is able to deliver. And yes, the market conditions are favorable, but we expect that the breadth, duration and the resiliency of the cycle will continue. The effect of Middle East and offshore will continue to give us a favorable backdrop so that this strategy will continue to support margin expansion.
So that’s our belief. And again, I don’t want to put a ceiling, I don’t want to put a max, but I will continue to push my team to continue to extract the best and seize the cycle, as we say.
Roger Read: Sounds good. Good luck with everything and thank you.
Olivier Le Peuch: Thank you, Roger.
Stephane Biguet: Thank you very much.
Operator: And I will turn the conference back over to the Schlumberger management team for closing remarks.
Olivier Le Peuch: Thank you, Leah. Ladies and gentlemen, as we conclude today’s call, I would like to leave you with the following takeaways. First, the ongoing oil and gas cycle continues to display the unique attributes of breadth, resilience and durability that closely align with our business strategy. In this environment, unparalleled offerings in our core, our ability to enhance value through digital and our investments in New Energy have us positioned during both today and tomorrow. Second, our international reach continued to drive our financial performance. As investment momentum has shifted internationally and offshore, our business is well positioned for sustained growth and will be further supported by our OneSubsea joint venture.
Third, after posting an impressive 9-month year-to-date performance and with visibility into the fourth quarter and 2024, we remain confident in our full year and through-cycle financial targets. This is an exciting time for the energy industry, and SLB is ideally positioned for success across all time horizons. This is an excellent environment to continue delivering value to our shareholders. I remain fully confident in our strategy and look forward to another successful quarter and close to the year. With that, we will conclude our call this morning. Thank you, and good day everyone.
Operator: Ladies and gentlemen, that does conclude your conference for today. Thank you for your participation. You may now disconnect.
