Doug Pferdehirt: Interesting question, and actually I think a lot about this just in my spare time. So, look, a lot changed. And when we talk about the customers, I would say our customers are much more collaborative, much more open to partner-led solutions, much more open to new technologies. And it’s really what enabled us to be able to achieve the success we’ve achieved with Subsea 2.0. The idea of standardization has been around since before 2010. The ability to be able to go from engineer to order to configure to order, which is much more than just standardization, was really the key when we unlocked that and were able to convince our customers that they could still have, if you will optionality. But the building blocks were going to be standardized, not the final, the final product, but the input to the final product was going to be standardized, that really changed the way of thinking.
So, look, a lot of the credit goes to our customers. And their behaviors, which have certainly changed and improved over the period of time, our customer base has also expanded quite significantly over that period of time, that I mentioned in the script, we’re operating in twice the number of basins that we have historically operated in, so people don’t really think about it that much, but just the offshore market. When we think about offshore as offshore, but it was fairly limited in the areas of offshore that were really being developed, and that has doubled. And then, when you start to look in the, what keeps this momentum going, you start to look at all these frontier basins that we’re hearing about. They’re not onshore, they’re offshore.
And they’re offshore around the world. They’re not in any one particular continent or one particular area. They’re spread around the world. And those areas are the ones that are going to contribute well beyond the numbers that we’re talking about today. So, it is very, very different. And thank you for pointing out, I do want to close on, we’re a different company, we were a great company in 2010. I believe we’re an even greater company today. And again, that’s driven by the change in our operating model and our ability to be able to demonstrate to our clients and give them the confidence to direct toward us the work that they do, because of who we are.
Marc Bianchi: Great, thank you very much.
Operator: Mark Wilson at Jefferies, your line is open.
Mark Wilson: Thank you. Yes, excellent set of results and an outlook there. Doug, just a few outside points and the sale of the Apache vessel, I’m just wondering if there’s any more of those planned. And then, the other question, do you see on the horizon a first offshore CCS award coming at all? Those are my two points?
Doug Pferdehirt: Thanks, Mark. Regarding the fleet, as we have said, since we formed the company, on the 17th of January 2017, we’re going to focus on a company that really had exemplary through cycle returns. And part of that was we were going to do things differently in regards to the fleet. We do not need to own and operate all of the vessels that we use in our business. The only way to do that is to be a company that others trust, and others are willing to work with. And that’s our reputation. And that’s how we’ve been able to develop our vessel ecosystem and bring in world-class partners like Allseas and Saipem, and more in the future. And that’s really what enables us to continue to look at our fleet and determine if those assets are strategic to our company or not. And if they’re not, then we’re able to continue to streamline our — improve our returns by streamlining our fixed cost base.
Mark Wilson: Okay, very clear.
Doug Pferdehirt: I’m sorry, Mark, and I just was reminded of your second question. I got excited about the first. Thank you. On the second question, I would answer that by saying indeed.
Operator: Kurt Hallead at The Benchmark Company, your line is open.
Kurt Hallead: Hi, good morning everybody. Hello?
Doug Pferdehirt: Good morning, Kurt.
Kurt Hallead: Great. Well, making sure you know what, I didn’t lose you. Hey, Doug, with the expanding inbound and backlog you have on Subsea and obviously the increased visibility out toward the end of the decade. I was wondering to give us some insights on what — how you’re managing execution risk internally and what you are able to provide to your client base that assures them that when they do throw this stuff your way, you’re going to be in a very strong position to handle it. And as you said, deliver it on time.
Doug Pferdehirt: Kurt, that’s the million dollar question. And I will tell you when I’m speaking to clients, that is typically when they call me, that is typically the call, it’s — we have this new opportunity, we’re looking at this new emerging basin, we want to be securing assets well into the future we want to work with TechnipFMC, give me or give us the confidence that you’re going to be able to deliver this, that is absolutely the discussion that’s going on today. First and foremost, do what you say you’re going to do. And we’ve demonstrated that. We continue to shorten the cycle times; we continue to deliver the innovation into the industry. And we continue to be the company that our clients want to partner with, that they want to work with because of our behaviors, and who we are as a company.
More importantly, as to give them the additional confidence, I should say, is really helping them understand how this shift from engineer to order to configure to order has fundamentally changed the operating model of our company. And we actually had an opportunity earlier this week with our Board of Directors to kind of walk them through how we’re operating the company today at on a daily basis and an operating level. And it’s a profound change, and the visibility and the — our ability to be to continue to be able to see though and understand what are those key success factors that will ultimately deliver the KPIs or if you will, the project on time. And tracking those key success factors is a really quite a fundamental change. And I know it sounds basic.
But when you’re doing configure to order, the only really metric you have — I’m sorry, when you’re doing engineer to order, excuse me, the only real metric you have is the output, did you or did you not deliver on time, and that’s too late to fix anything, what they now see is that we have the ability in the configure to order to be well ahead. There’s so many things we can do, that we could not do in the past. Because remember, when we got a subsea order, we spent nine months of detailed engineering before we could place a single order with the supply chain, internal or external, the situation our competitors are in today. Whereas we’re able to work with our clients and we can look at 5 years ahead of time, we can look at one year ahead of time, and we can start putting in place those building blocks that are going to enable the success by ensuring that to schedule — by having scheduled certainty and schedule assurance for our customers.
