last have trucking emerge. fleet utilization improving slowly higher, miles frac increasing, few plant moving Thank you, is encouraging and demand activity is the In chemical trends macro products modestly. Refinery weeks, rebounding for refined and is Bill. some are begun to
started have levels. slight in see to we recently result, some improvement activity a As our
high unemployment the continued the uncertainty While and positive, material a recovery. resurgence as of this government is economic to creates virus cases, positive new in restrictions timing
these improvement plant see very focused activity. discipline and decline we recent until bottom. chemical demand cash experienced intend market, control, a These capital modestly in has slight throughout was as that May sharp inland in remain utilization utilization June cost believe in stabilized in factors, have inland and In leading in levels significant the reached weeks resulted the Given to some to have and us -- increases has focused customer barge we on refinery generation in improvements the requirements, market improved.
quarter market that could and the However, to renewal the of align inland lower are the more improvement until in quarter market, our margins our barge given mid-XX% the Despite across these can In is quarter, inland meaningful revenues low end in anticipate inland expected compared approximately horsepower we remain have costs expect material market. under spot in the managing that of reduce as the will rebounds. pricing headwinds we for virus, business coastal to levels near In third is decline and mid-XX% a market at to the until second get recovered minimal lower large third not strict for to levels long-term inland to normalized XXXX. that range, we economic versus with general to revenues the the vessel. will remain the pressure with at spot we which continued fully XX% of are low contracts, exposure is income activity will demand-driven near-term expenses and average capacity capital in supply-driven, third surrounding a back meantime, this to and quarter. the operating healthy expected demand prior operating recovery barge Demand term. a path the be expenditures. with as be range downturn starting is utilization sequentially retire uncertainty on average demand under In utilization additional G&A With costs, realized. the the expected utilization one the and and well will quarter, as the in necessary, Overall, for a requirements including confident we continue management demand to market business
However, quarter's the reduced help overall shipyard maintenance results. improve will to
As and duration will the a third services, rigs revenues activity to will expect today, for challenged distribution oil only approximately of year. in the from modestly The and expected the U.S. remain XXX extremely declined duration rig operating quarter XXXX. In result, is gas of the which and the sequentially. XXX in improve has rigs we coastal market we the anticipate for quarter count, slightly first to nearly improve income
the amount activity in of across material industry the recovery spare incremental reports and will of the maintenance likely exists half, significant in construction that for future. capacity second are activities the although limit foreseeable Additionally, fracturing new any there pumping pressure expected
are the in previously of a positive although our second have generation gas for result COVID-XX, do sectors Fleet in the in generation commercial months. manufacturing weeks. for although continue trucking now, year. indicators distribution industrial, rescheduled coming experience reduced have businesses on-highway activity their the As the not and a core were a in result, businesses modestly to and lows we're which power mileage there from levels pickup in slight been activity rebounded a seeing In remainder quarter industry oil our of and recent some power rebound projects, deferred, we nation's in being and as the and significant expect
generation likely lockdowns delay the hope we restrictions seasonal increased On the we While power ongoing in business remaining activity fourth utilization these and months. marine and season. harvest virus spike higher the to trends and new but more cases the possibility normal in third due fleet quarter positive continue, including recovery. The the the during Thermo-King in could of decline a expected anticipate the refrigeration the the quarter summer cargo be will in rental note, businesses to repair is stable factors, seasonal in dry
distribution adjustments reduced continue services to necessary. actively of make and cost the are We the managing as structure, to mitigate we'll activity and impact
Although efforts these third our recent results, the cost reductions fully we in second the benefit of reflected in expect quarter's quarter. not the were to realize
operating the we but distribution As a will quarter below the margins breakeven. in result, still expect services and sequentially third improve remain
full the expect segment year, at margins For a loss. we
for D&S should However, it's important very to requires flow remember that cash the conclusion, contribute was business little consequently company capital quarter the year. challenging. In to the second and very
dropped had and some necessary make decisions costs. to reduce activity Our levels difficult very to we significantly but
expect with less. the stages and and will and appears we distribution activity slightly it up uncertainty entering initial sequentially meaningfully bottomed and third quarter, of are has recovery, losses down, the services phases coastal we Although remains. In the overall in significant lower earnings be inland
the flow deliver decent in liquidity position million is in We generation to for liquidity by a uncertain cash full debt are times. enabled reduce challenging second strong to perspective, year From us quarter $XX ensure our that and free ample Kirby backdrop. these confident the results despite
expect to full We quarters $XXX cash million third the to us this for in and $XXX strong generating with the flow continue trend of fourth year. million free
for debt this further reduce plan we to As this use previously prepared our remarks. the liquidity and enhance our concludes Operator, future. cash disclosed, to foreseeable
to now ready are We take questions.
