Olivier Le Peuch: No, that’s correct. I think, James, thank you for laying out, I think, the theme of offshore, I think offshore is a distinct attribute of this cycle as really already delivered in terms of total activity visible beyond 2019 and includes both shallow and deepwater that have both grown visibly in the last 24 months. Shallow mainly driven by addition of rigs that we continue to see coming in the Middle East and Asia region and deepwater across all the deepwater basins. And we anticipate, albeit at a more moderate rate for deepwater and shallow, the rig activity to continue to increase and the exit rate of ’24 to be above in terms of rig count, offshore rig count, total offshore rig count, the total exit range of ’23.
As a benefit, I think both the offshore activity and deepwater, where we have the benefit of the scale with our subsea venture will benefit. Hence, we continue to see growth, not only in ’24, but running out to ’25 and beyond. As I said, the total FID offshore keeps paying $100 million for each of ’24 and ’25, and this is not only supporting activity next year and ’25, but support longevity of offshore investment beyond. So we are — we remain very constructive on that environment. And yes, we see the exit rate to be above the last December in 12 months from now.
James West: Okay. Perfect. That’s great to hear. And then maybe a quick follow-up in terms of CapEx. I don’t know if, Stephane, if you want to take this one, but CapEx seems to be — it seems like you’re going to keep it at the same type of level that it’s been, that wasn’t in ’23, but there’s going to be a lot of — a lot more activity. And so does that number eventually need to move higher? And when it does — if it does, do you still believe that you can maintain this 5% to 6% of revenue for CapEx dollars ratio.
Stephane Biguet : So look James, yes, we are still growing going into ’24 and beyond. But this level of CapEx we spent in ’23, we think remains adequate for this year as well because you have to think about the mix of activities as well amongst all divisions. So we think we can very well address the upcoming growth within this envelope without having to increase normally throughout the year, unless growth is much more than expected. But we were comfortable with this, and we will remain indeed within our guidance, and it’s actually the low end of our guidance on the CapEx side.
Operator: Our next question is from David Anderson with Barclays.
David Anderson : So maybe I can start off with the Middle East here. So another double-digit sequential quarter on EMEA, clearly, an enormous runway of activity in front of you the next several years between unconventional gas and the number of capacity expansion projects underway. My question is how you see top-line versus margins evolving? Can you maintain this pace of growth in the region in ’24, or are we getting close to capacity in terms of the number of rigs available, service equipment, the E&C capacity here is pretty tight over there? And I guess, conversely, should we start seeing margins expand further as contracts reprice due to tightness in some. I noted that the tendering of Safaniyah was delayed by nine months. I’m wondering maybe there’s some sticker shock from pricing. So perhaps is already underway, but just a little bit more details in terms of capacity and pricing in the Middle East, please?
Olivier Le Peuch : Yes. Thank you, Dave. I think we have been very pleased with the activity and the way we have been able to turn this activity growth in the last 18 months and the last 12 months, particularly into revenue, benefiting from our strength on the ground in the Middle East. I think I would characterize beyond the capacity expansion and on commercial gas, which is a dual benefit for activity. I will also characterize the activity in the Middle East to be very broad. It’s not two country leading this, it’s almost every country in the region that we see further activity and will derive from its further revenue growth. So we are not at capacity. We don’t see an inflection down of our revenue growth potential in the region, benefiting from our technology market position with every national company in the region and capability for integration to harness the part of our technology into performance for our customers, hence delivering higher revenue from rate of activity.
So we are confident. When it comes to our capacity, yes, equipment capacity and everybody has been disciplined in the region. And hence, we have been responding and benefiting from pricing in the last 18 months. And as a consequence, our margins have expanded in the region and have supported what you have seen as our international margin expansion year-on-year have been a driver for margin expansion internationally. We expect this to continue as we execute 2024. But again, it’s a long duration cycle, both by the nature of the investment decoupled from short-term pricing on commodities. So we remain very confident about our market position first and the market outlook and our ability to differentiate through performance, integration, technology and then continue this success in ’24 and ’25 and again, well into the second half of the decade.
David Anderson : Yes. A long way from the peak. That’s pretty clear, at least that part of the region. I was wondering if we could shift over on the digital side. I know there are a number of comments in the release today regarding increasing digital adoption by your customers. I was hoping you could expand on that a little bit. Is that simply about customers using Delfi more or as they get more comfortable with it, is there a certain application gaining traction? Is there any metrics you can give us in terms of year-over-year usage from your bigger customers? And I’m also just kind of curious, in order to grow digital revenue by essentially 50% over the next two years, is this primarily coming from an increased digital adoption of existing customers? Or do you also need new customers to get to that target?
