OFSE is expanding its capabilities and technology portfolio to meet the challenges of a net-zero future, including new energy areas such as geothermal and carbon capture, utilization and storage, and strengthening its digital architecture.

IET remains optimistic on the global natural gas outlook, seeing a continued shift towards the development of natural gas and liquefied natural gas (LNG). The LNG project pipeline remains strong driven by expectations for continued energy demand growth.

The company expects continued upstream spending growth, with increased focus on optimizing production from existing assets, leveraging production and digital solutions businesses.

The company has undertaken significant structural changes, and the cost-out performance is coming through in operating results. Management is still working to further identify areas to simplify and create efficiencies.

Recent actions were launched in OFSE to remove duplication and further streamline the business.

In IET, the aeroderivative supply chain continues to show signs of tightness, which the company will continue to manage operationally.

The conflict in the Middle East has added another element of uncertainty across the oil and gas markets. A further escalation in geopolitical tensions across the region could impact the Company.

In a challenging economic environment, the company may experience delays in the payment of invoices due to customers' lower cash flow or limited access to credit markets.

Cash held outside the U.S. is 71% of the total cash balance, and depending on the jurisdiction, the company may not be able to use this cash quickly and efficiently due to exchange or cash controls.

The company believes its portfolio is well positioned to compete across the energy value chain and deliver comprehensive solutions for its customers.

The company is focused on delivering innovative, low-emission, and cost-effective solutions that deliver step changes in operating and economic performance for its customers.

The company's outlook and expectations are influenced by macro factors and are subject to changing conditions in the industry.

Corporate expenses decreased by $8 million year-over-year, driven by savings related to the company's corporate optimization process.

Operating income performance in both OFSE and IET was driven by higher volume, price and cost-out initiatives.

The company measures productivity by the remaining variance in profit, after adjusting for the period-over-period impact of volume and price, foreign exchange and (inflation)/deflation.

OFSE is strengthening its digital architecture and addressing key energy market themes.

The company has businesses within its portfolio that are exposed to new energy solutions, specifically focused around reducing carbon emissions, including hydrogen, geothermal, carbon capture, utilization and storage, and clean power.

IET operating income was partially offset by higher research and development spend.

The company increased its quarterly dividend by one cent to $0.21 per share.

The company repurchased and canceled 5.4 million shares of Class A common stock for a total of $158 million.

Capital expenditures in 2024 are expected to be made at a rate that would equal up to 5% of annual revenue.

The company reported a 28% reduction in Scope 1 and 2 carbon dioxide equivalent emissions compared to its 2019 base year.

In January 2019, the company made a commitment to reduce Scope 1 and 2 carbon dioxide equivalent emissions from its operations by 50% by 2030 and achieve net zero emissions by 2050.

The company views the area of environmental, social, and governance as a key lever to transform the performance of the Company and its industry.

The company remains balanced on the oil and gas outlook and continues to see areas of strength across its broad portfolio.

The company continues to believe in a multiyear upstream spending cycle, which will be more durable and less sensitive to commodity price swings.

North America activity has recently flattened out after trending lower for most of 2023, and the company expects this flattening trend to last into the second quarter of 2024 before seeing a modest recovery in activity during the second half of the year.