Doug Pferdehirt: No problem, Dave. I will try to address it, as well as I can. So, the 70% over 70% that we refer to as you know is the direct awards, which is a combination of those iEPCIs that are direct awarded, the most of ours are direct awarded, very few go out to a competitive tender, as well as our Subsea Services and other direct awards from our alliance partners. On the iEPCI portion for us, is about 50% of our total. Do I see that increasing? Yes. What gives me the confidence and visibility is remember, they typically almost always in our case start with an integrated feed study, the integrated front end engineering and design which is two to three years old. So what gives us the unique visibility is, one, we can see, because we’re at the table much earlier.
We are – in many cases doing an integrated feed study and iFeed. Contractually, we don’t do iFeeds unless it will be direct awarded to us, because it would not make sense for us to do an integrated feed study demonstrating the value of integration if we weren’t going to execute the project. So, in the front-end engineering studies, which are at a very robust level right now, the percentage of integrated feeds, which will convert into integrated EPCI studies continues to grow, which again gives us that confidence. So, we know the client. We know the basin. We know that working together, if we can achieve the economic, the right economics for the project, then that will turn around and be direct awarded to our company. So, I would say, we have great confidence as you know, and we give our inbound outlook.
It’s by project, by name, there’s a great degree of confidence in the numbers that we put out there in our ability and consistent track record of delivering against them. So we have the visibility from the feed studies that gives us the confidence. We continue to see the direct awards going up. And I’ll make one other kind of comment here for you Dave. It wasn’t part of your question, but I do think it’s interesting. Just this year, right? I mean, we’re not that far into the New Year. I will tell you the number of very large Greenfield projects that we are already in the front-end engineering and/or commercial tendering stage or let’s say commercial negotiation stage, because again, if they are direct award, there is no tender. I’ve never seen anything like it.
And it’s, the cadence and the size of the projects are really quite – it will be record – it will be one record after the next record. And by the way, I’m not counting the emerging countries in here. And there may be at Tanzania, Colombia, et cetera. I’m not counting those. I’m saying this is within the traditional or known basins that were operating in today. There’s a lot of big projects coming in and we think, we’re working very closely with our customers to bring those to life.
Dave Anderson: And Doug, is that incremental to the orders that you’re highlighting further out to ‘25?
Doug Pferdehirt: Well, no, not necessarily. If we’re – obviously, if we are in direct negotiations today and probably going to happen before then, but you raised another good point and I don’t want to be too verbose here. But, we are and I’ve mentioned this on past calls, this started about nine months ago, our clients want to secure our capacity. They understand what we have is a unique offering. So they’re not only talking to us about the current award, but in most cases are talking to us about the future phase where the future tie-ins or whatever we may be. So, yes, part of it is in. But yes, we are also looking and working on awards that will be coming beyond 2025.
Dave Anderson: Thanks a lot Doug.
Operator: Your next question comes from the line of Mark Wilson with Jefferies. Your line is open.
Mark Wilson : Thank you. My first question, Doug is, on the subject of the additional awards and the $30 billion after 2025 you talked a lot in the past about the manufacturing process you’ve put in place as well to be able to deliver all the services you built. So can we talk about the if there is any impact to the expected margin from this additional if not and larger market outlook? That’s my first question. Thank you.
Doug Pferdehirt: Sure. Good afternoon, Mark. So, I believe you’re going the anger of CapEx and I’m going to go there even, I hope that’s where you wanted me to go, but look, because of the 2.0 in the configure to order, some of which I believe you’ve had an opportunity to witness yourself. It allows us to actually achieve these higher rates of throughput within the existing facilities without having to spend additional capital. So as always, there will be capital spend on replacing certain machine tools et cetera. But in terms of roof line capacity or major expansion or major capital investment to be able to deliver this growth that is not the case. It would be within our normal CapEx expenditures.
Mark Wilson : Thanks for that. And actually, where I was really looking is on the EBITDA margin you’d be expected to generate, if we’re not having to put in more investment other economies of scale, frankly from a higher throughput coming through within your margin expectations. Thanks.
Doug Pferdehirt: I would agree with that statement. Fully agree with that statement.
Mark Wilson : Okay. Thank you, very much. And then, lastly, looking further ahead and obviously you’ve spoken to a lot of technology coming through, the gas processing, Subsea separation CO2 injection. There are new basins emerging, clearly bringing some things in Brazil, which is now been out there for a few decades now. But there are new basins coming through with new technologies, new levels have to go to so many kinds of depth and with gas processing. Where would you suggest the industry is looking in terms of the next technological step? Is it in terms of going deeper doing more with gas or indeed electrification just generally? Thanks.
