“So, we still may have a few more volatile quarters ahead.”

In context

“ility is recognized on the income statement as revenue. This quarter, we settled a large contract, enabling us to retain all related cash deposits, thus recognizing the remaining liability as current period revenue. I do not expect this margin to be sustainable beyond this quarter. A lot of you are likely wondering how to model engineering going forward given the recent performance. I believe the best approach is to use the sale of plant backlog as the next 3 to 4 years of revenue with average profit margin in the low- to mid-teen percent. During times of rising backlog, cash inflows and margins tend to be higher, whereas in a declining backlog, it's usually the opposite. However, the current situation is deviating from this pattern due to the significant project wind-down from sanctions. So, we still may have a few more volatile quarters ahead. EPS of $3.16 increased 14% from last year or 20% excluding FX. As Sanjiv mentioned, this is the ninth quarter in a row of 20% or more EPS growth ex FX. Operating cash flow is down versus prior year and sequentially. This is almost entirely driven by engineering project timing. Please turn to slide 6 for a review of 2022 capital management. Operating cash flow was $9 billion for 2022 or 82% of EBITDA, consistent with our multiyear average. The business continues to deliver steady levels of cash in any economic environment. You can see to the right how we invested that cash, aligned with our stated capital allocation policy of growing the dividend, reinvesting in the business and using leftover cash for share repurchases. During the year, we invested $3.3 billion while returning $7.5 billio”