5 key themes from EU OFS earnings season It has been a strong start to the year with the EU Oil Services sector up 9% YTD, outperforming both EU OandG and the wider market. We see 5 key themes emerging from 4Q earnings calls: 1) the outlook for offshore order intake remains highly constructive with bidding pipelines stable at record levels, suggesting revenue growth at least through 2027; 2) capital discipline is holding both from producers and the supply chain; 3) contractor terms and conditions are improving as the OFS sector turns to a seller''s market, with downside risk better protected particularly in the next wave of offshore wind developments; 4) energy transition project opportunities have matured and should comprise a higher share of total order intake in 2024 and 5) returns to shareholders are stepping up, with 6 out of 10 companies under our coverage initiating or increasing cash distributions and 4 announcing new buyback programs. Top picks unchanged with skew to offshore exposure We still prefer Saipem for offshore exposure along with Subsea 7 and SBM Offshore, all of which trade at a discount to longer term multiples despite stronger performance post-results. For exposure to gas/LNG and high growth potential in the energy transition, Technip Energies remains our top pick with the upcoming CMD in 4Q this year likely to be a major catalyst for the shares. For broad-based exposure to increased OandG drilling activity we favour Vallourec, with last week''s announcement that ArcelorMittal would purchase Apollo''s 28.4% stake in the company removing a key overhang on the shares. MT said it would not buy more shares for 6 months, raising questions about its longer term interest. Changes to estimates and vs consensus On average our 2024 revenue estimates have increased by 4% while our EBITDA estimates have increased by 2%, with Saipem, SBM Offshore and Vallourec seeing the largest upgrades. We remain above consensus EBITDA for SPM, SUBC, TE and...