Olivier Le Peuch : Okay. Let me come back first on some metrics that I think we have highlighted into my opening remarks. And I think this relates to the adoption of Delfi indeed, adoption of a number of users, use of cloud compute on our Delfi platform and use of additional hedge or AI capability that we offer to customers. The combination of which, as I said, has grown 60% in the last two years on a CAGR rate and the adoption metrics that we shared, both the number of users and the number of hours of complete power that we serve to our customers on the cloud have been growing by 40%. So yes, the adoption is going, both measured by, as I always said, one customer at a the time that transition from our legacy desktop offering to our cloud.
And by expansion of our workflows, data, AI capability that we offer to existing or new customers. So it’s a combination of a transition of the existing customers to the cloud and adoption of data and AI capability because we are offering our platform that the industry is recognizing adopting. And finally, and maybe one of the most exciting parts that adds a dimension of growth is the digital operation, both drilling and production digital operation. You have seen some of the announcements that have been highlighted in recent weeks and months. And last week, further alignment with a partner to accelerate doing automation and autonomous systems. So the drilling adoption on the operation production with our partner, Cognite. And this is supplementing, I would say, the core growth of transitioning our real sound customers from desktop to the cloud.
So you have three dimensions. You have the cloud transition with existing customers and adoption of new customers coming to SaaS solution. You have the data and AI. It’s a new market. It’s a reverse of the data management that scale into the cloud and AI, unlocking the power of data through AI in our industry; and finally, digital operation. These three trends are supporting our growth ambition, both this year and next year. And this span all the customer segment across the globe, and you keep seeing some announcement of customer adoption on our solutions.
Operator: Next, we go to Scott Gruber with Citigroup.
Scott Andrew : I want to touch on transition technologies, you noted over $1 billion in sales. And I realize a lot of these are new and focus on emissions reduction. And I believe that the bucket there is separate from new energy, correct me if I’m not accurate. Olivier, I wanted to ask about the outlook for these technologies and the growth of sales of these technologies as the uptake by customers around the world seems pretty strong. Can you speak to the multiyear outlook? And is the cadence of growth for transition technologies additive to the growth rate from the core?
Olivier Le Peuch : No, I think you are correct first in stating that this is the distinct from our focus on the five themes that we have in new energy. And this thing from the CCS, I mentioned where we have a lot of success in geothermal. And it represents a portfolio of technology that we have, that we are developing, that we are promoting to our customers that have a distinct lower emission carbon intensity compared to existing or legacy technology and have net effect on our customer for their Scope 1 or their Scope 3 upstream as we call it, emissions, but also have the characteristic to bring efficiency. So customer is looking for low-cost, low-carbon outlook and continue to adopt this technology by contrast with alternate technology that exists in the market as they deliver not only lower carbon, but also deliver higher efficiency, which are the way we characterize this technology.
So yes, we are very pleased adoption. Some technology are very unique like almost zero-carbon cement solution. Some solutions are really game-changing such as some of our both processing subsea processing solution that having a net impact on the carbon footprint of subsea operation. Some technology are disrupting for the future, such as electrical full subsea and electrical full completion technology. And hence, we are seeing accelerated adoption of this. And finally, we say that we are also seeing following the COP 28 much more interest into our methane emission management solution, and you have had the announcement we made with Eni, supporting them as a global company to make an assessment and be assessing their emission intensity from methane and proposing abatement solutions.
So this is a mix of technician will continue to be going in our technology mix and that supports our ambition for sustainable future and a balanced planet, but also aligned with our customers on lower carbon, lower-cost future.
Scott Gruber : Right. Got it. Appreciate that color. And then Stephane, one for you. I appreciate the cash return target for ’24. Can you also provide some broader color on the cash conversion rate? The working capital release in 4Q was very impressive. So curious thinking about the working capital outlook for ’24 tax rate, et cetera.
Stephane Biguet : Scott, yes, we were also very pleased with the fourth quarter and full year free cash flow and indeed in the fourth quarter, it’s coming almost entirely from the working capital. So now we do expect, as I say, 2024, to be another very strong year of free cash flow, and it will show the same quarterly pattern we usually see. So in the first quarter, the working capital will clearly increase. We have the payment of annual incentives to employees as you may know. And then we’ll have the reversal of certain exceptional items that occurred in the last quarter of 2023. So we’ll see the effect in Q1 as usual, but then this will be followed by a gradual improvement in subsequent quarters, in line with what we observed this year. So hopefully, we can have another very strong finish of the year in 12 months from now. And deliver a strong performance as well.
