Good morning

Tahira Afzal - KeyBanc Capital Markets

A couple of questions, to start off, on the oil and gas side for J. Ray, if you look at your focus list historically, can you sort of estimate the potential win rate that you''ve seen there?

Bruce W. Wilkinson

I think historically until recent past is we were sort of winning a quarter to a third of what we bid was and that''s over the long span of time looking back. There was a period in probably late ''06, early ''07 where that hit rate went up and it was just timing of what was out there and where we were namely that that the biggest opportunities were in our backyard in the Mid-Eastern and South East Asia. So, that was what I would call maybe an anomaly at the time. So, I think we think in terms of the quarter to a third, ongoing is a reasonable way of thinking about it.

Tahira Afzal - KeyBanc Capital Markets

Right. And then if I look at your focus list, it''s gone from around I think $7 billion in March to well close to double that amount. Is there a specific region that these opportunities are coming up in or is it fairly widespread?

Bruce W. Wilkinson

Yes, it''s...I would say, maybe unfortunately or fortuitously on the near term, it''s a case of as I say, the rich get richer, it''s clearly a continuum of what we''ve seen recently. The Mid-Eastern Asia would be on the near term by far, thus the larger component element of that $12 billion, you go further out 18 months, 24 months out, once you get out there, then it becomes much more balanced because you have, it would be higher expectation of what''s likely to occur in the Gulf of Mexico and the Caspian by then which at the present or what we do are down at the absolute lowest end of the spectrum. So, it will shift and what I would hope for is it does become more balanced, because clearly as they say, we''re sitting here now with productive capacity of fabrication of 11 million to 13 million man-hours under utilized and simply because we have an overloaded in some of these and a dramatic under load in others.

Tahira Afzal - KeyBanc Capital Markets

In the past, when you''ve looked at operating, let''s say full capacity on a broad-based level, has that positively impacted your operating leverage?

Bruce W. Wilkinson

What I would say, up until the last couple of years or so, what we found...yes, is that on the marine side that if we have a standard costing system that assumes summary barge days a year, when we went beyond it, it definitely…the leverage hit the bottom line and it was discernible. We''re struggling a little bit of that now, is that chronicle in the earlier questions because of...so much of it in one place and the crowded calendar. But on an ongoing basis that should be the case.

On the fabrication side, what I saw historically is that until we started making the capital investments we''ve made over the last few years in places like Jebel Ali in Dubai and in Batam, historically if we have a 5 million man-hour yard and we went to 7 million, the opposite happened, we had a degradation productivity, we had to throw man-hours for... we had to throw more man-hours at something to get the same product...productive output. What we''re actually doing right now is running well beyond that capacity in a couple of these yards and without degradation in productivity, so we are managing that part of the business very well. So, I would hope that we can replicate that in the future with work getting spread back to the Caspian, back to the Gulf of Mexico as well.

Tahira Afzal - KeyBanc Capital Markets

Okay, great. And then if I look at the Middle East and for example, look at, let''s say the Manifa opportunity that unfortunately did not go your way, if you''d taken that on and you''d won that, would you have had to subcontract that given that you are operating at a high-capacity level?

Bruce W. Wilkinson

Are you talking about the fabrication business?

Tahira Afzal - KeyBanc Capital Markets

Yes, so the Manifa pipeline project?