Doug Pferdehirt : Look, I don’t, Kurt, learned a long time ago is a service hand not to speak on behalf of my clients. And so I’ll just give you my perspective, not speaking on behalf of my clients and they may or they may agree or disagree with me. But look, I think everybody has their long-term energy outlook. People understand the rate of change both in terms of the demand is going to go up. And the rate of change of the energy mix. And I think when you look at those two through a realistic lens, you come to a conclusion that these are probably the right investments to be making to ensure that the world has access to reliable and dependable energy as we continue our journey forward. These are solid projects with solid economics and are created, now with the confidence they have, because of what we have done as a company and by the creation of TechnipFMC and our ability to deliver these projects consistently on schedule or ahead of schedule which again is, 12 plus months faster than anyone else can do it, because they’re doing it the old-fashioned way.
It’s just a very unique scenario to be and then they have a much higher level of confidence, I would tell you in our company. It’s hard for me to say that, I wish, they always did but when we were all doing bespoke work, like the rest of the market is doing today, you have confidence until something goes wrong, because you’ve never done it before. We’re not doing bespoke anymore. We’re doing configured order versus engineered order. So, the level of confidence is there. We are giving our customers that level of confidence would bear deciding in their investment decisions. I don’t you know want to weigh-in on. But I, again, will just reiterate we know the demand going to be there and as we move towards just be simple impact of artificial intelligence in the electricity demand that that’s going to require there’s news demand coming from all facets on the energy complex.
And then, you just have to make a decision based upon what is the realistic energy mix to be able to deliver that demand. Our customers I can tell you and I don’t know that it’s a disconnect. I’ll maybe be a little less, I’d probably appreciate your viewpoint and I don’t disagree with what you said, but look, I think people are quickly recognizing that this is the new reality and we will just keep our head down, execute, inbound execute, continue to grow, continue to innovate, bring in other applications that will allow our business to continue to grow both in terms of top-line and profitability. And we’ve been extremely disciplined and good stewards of returning to our shareholders and will continue to do so. So, I think what is continued doing what is the right thing to do and confident that we will be rewarded or continue to be rewarded for doing that, Kurt.
Kurt Hallead: I appreciate tht insight. Doug, now to follow up on that, right, so you you’ve indicated that your iEPCI process and integrated processes reduced cycle time by 12 to 14 months. I think you can do it faster than some of your competitors in similar time period. So is that max out or how much more can you reduce that cycle time? How do we think about that?
Doug Pferdehirt : So to continue, it’s a continuous innovation curve. You know, look, this is a new, right we saw this. This is what happened in the unconventionals. And when I was back in the day when I was fracking it was single-stage, single well, and most you do two a day, because you had a rig down move to the next well, and we know then we went to 24 hours, then we went to simul fracking, now trimul fracking. So, look, there will continue to be we’re in the very early stages versus, well, let me say it a different way. We saw that productivity curve, which was dramatic in very impressive what was able to be accomplished in the unconventionals. Think about it in subsidies going to be no different. It’s just we’re in the very early stages of it. So yes, there will be more to come.
Kurt Hallead: Great. Appreciate it. Thank for your insights, Doug.
Operator: Your next question comes from the line of Scott Gruber with Citigroup. Your line is open.
Scott Gruber: Yes, good morning, Doug and Alf.
Doug Pferdehirt : Good morning, Scott.
Scott Gruber: I wanted to circle back on margin. So, you’re forecasting robust 16% this year, then to your 18% forecast in Subsea in ’25. And Doug, you talked about 18% being closer to normal versus close to the peak, so now with this raised order intake outlook. How should we be thinking about the margin expansion potential into ‘26, can you extrapolate that that trend literally and assume something close to 20% in ‘26 and would recent award support that level of margins in a few years?
Doug Pferdehirt : Scott, I had a look at my watch for a minute and just remind, I had to remind myself the year we are in. Look Scott, I appreciate the question. Clearly, kind of based upon the whole discussion we’ve had thus far on the call, the markets there, our position in the market is there, our unique offering is there, the direct awards are there, we just talked about that there is more leverage to come both in terms of cycle time, which will improve project economics and improve the total available market. But also in terms of our own internal cycle time and benefit and leverage, if you will, as we go more so conversion to 2.0 in iEPCI, neither of which are at a 100% today and they never be exactly a 100%. But will certainly be more than they are today.
