Thank you, Bill.
Intercoastal fleet today's River approximately of Before acquisition future Gulf barges XX ability is like conducts transportation average XXXX, towboats. the the Savage's Marine It used further fleet Waterway, service remaining Savage's are will fit. XX purchase system guidance the bunkering announcement and about majority business along approximately I inland perfect a have Inland of our to inland an strategic lower of Coast. towing our reduce fleet more barges tank fleet. XX X.X with capacity, The regarding with million The barges they and in lower Gulf the on Savage's on our improve expenditures. age discuss age for capital XX and consists comment This of years. average operations customers, of of barrels to the I'd Mississippi using a
Savage expands existing bunkering in which operations Florida, us New our beyond this significant bunker has service Coast the ability operations business, Texas port. giving customers the to and Gulf Orleans, in Additionally, important
the expect in expense. million normal first integrate quarter approximately revolver, through time to expect borrowings be regulatory will of deal $XXX fleet close modestly acquisition price we In financed additional taking our and and be and purchase integration XXXX, needed late approvals. to the conditions subject this The closing to into inherited the we and maintenance interest to will consideration accretive contracts, Kirby's costs, earnings, on
significant anticipated provide XXXX, for the Beyond this we enhanced realize benefits will earnings synergies, power as acquisition of Kirby.
our announced to our respect morning, per With to $X.XX XXXX of $X.XX in press our we release share. guidance this guidance
contribution Our a Savage, and reductions including guidance distribution and contemplates range in year-on-year coastal growth to continued in growth flat modest inland services. Marine, for from
be cash million, for this spending of year-on-year flow is to a fleet. approximately and average between strong XX% should be XX%, $XXX represents $XXX and free reduction capital XXXX for range it generation requirements expected includes in This CapEx XXXX. and million Our very our to
demand segments. GDP that and additional barge throughout our online. marine at robust demand coming modest driven remain inland volumes capacity barge by we -- transportation, from Looking expect increases the will inland In petrochemical in new XXXX,
factors, to to Together expect higher. will in contracts range barge from low in to XXXX. of result anticipated expect increase with continue remain double-digit low compared mid-XX% expected during we these the and a will are contribution that the rates range As to the Savage, year, we strong mid-teens utilization revenues our the inland term renew to
our XX% contracts. into term term and tight high continued placed will in anticipate contracts, market throughout new which year. In many that to demand will market of year, coastal, contribute recently throughout utilization to barges spot pricing strong be increases expect we the our With range the barge customer on the conditions we mid
yield XXXX, large vessels announced, determined new which water to ballast barges of return would However, shipyards, on not required in an that as at coastal their which retire systems previously treatment Kirby are plans capacity adequate have we would X X capital.
offset -- activity are anticipate currently to largely improved XXXX. we full reduced our pricing will and transportation impact combined coastal and coal in on an business year These and in Additionally, expected during are largely factors the have utilization.
revenues modestly result, we year-on-year. anticipate be to a will that As coastal flat higher
increase marine in to that XXXX low-teens anticipate year-on-year. will transportation, revenues the high the Overall, digits we single in
should full coastal transportation marine low the the mid-single in high-teens expect improve We with operating and the mid-teens for inland into year, margin digits. the the to in
quarterly to as normal will significant With anticipate have results the the coastal. lowest seasonal maintenance due the first to the beyond year we first as contribution regards performance, shipyard well planned quarter of improve in should quarter. factors Quarterly
segment, and Moving activity to that Services the oil will near and remain expect we term. Distribution our levels limited gas in
XXXX gas Although levels industry fleet likely will We in rationalization business pressure sales and capacity incremental XXXX distribution relative we significant improve do will initiatives as in anticipate pumping in restrain that activities of to expect will progresses. year and in customer increase manufacturing ongoing quarter oil the increase excess our fourth orders.
and segment industrial from revenues growth Thermo anticipate to year. be markets, the XX% in will approximately expect industrial and industrial for in Convoy we Overall, businesses we with and the XXXX, the acquisition XXXX commercial commercial our King XX% the our revenues compared distribution representing of in and markets, XX% down full services, on-highway including to our In business. contribution to
of pumping oil the in assumes remanufactured -- The units and manufacturing and service for gas oil pressure and weakness higher guidance assumes gas continued with our and end market. orders The lower in new end and improves range activity distribution. sales incremental high approves
the Segment full operating are the digits to expected being for quarter mid-single with low the be lowest. in the first margins year to
was with strong year a in XXXX wrap good growth things transportation. up. to marine Now
XXXX, the have and flow revenues In we In our the margin flooding at poised our able changing inland better year point the complete, portfolio cash Savage. demands and adjust near in presented and the of to closing business fleet better XXXX, this repeat challenges major historic our acquisition with service strong we anticipated necessary delivered taken double-digit actions acquisition. for and many -- of are and marine, for be in any than we Although growth positive earnings Once to services, the conditions history. to growth integrating continued significant distribution posted improvement a to customers and market XXXX. will in free workforce despite and is will
future. and with continued We marine in demand to the for expected, is continued -- increases earnings strong inland revenue positioned deliver foreseeable meaningful
to to of to improve significantly, quarters cost margins. coastal, consecutive In And Industry the fleet positive are we've pay our performance impact in moving had tight in is our improved the is and near reduce coming off, and term, XXXX will and improving in expected operating with X actions The efficiency years. the X we financial has coming the expect increasing have higher. begun our capacity although returns market retirements barge the remain years. utilization in barge prices
the pent-up In we've costs continues and taken operations. actions necessary confident In is rightsize distribution meantime, and that oilfield to are is reduce challenges, our services, and inevitable. while growing recovery a we the the some demand present to
internally thereafter. acquisition power the segment efforts for provide our to and In commercial the and businesses stability grow additional diversity, earnings will other industrial, XXXX in and and Convoy
took distribution could XXXX we strong some And strategy significant take reduction strengthen from our cash our balance for financial positive XXXX, expect opportunities services positive to shareholders. finally, priority, they will create our acquisition marine align to improve in generate if with top company advantage and our our In sheet Debt although we our and and reduced with expenditures. returns be capital contributions of and and significant we flexibility. flow operations, free steps
our Operator, that concludes prepared remarks.
to ready questions. We now are take
