for last Thank very Kirby. have you, times Bill. most been months challenging including six The everyone,
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The the difficult COVID is fourth seasonality second refinery However, with continued starting relatively believe and low range pace a size the quarter wave to this the and mid-XX% recovery negatively in of are be the of to of barge appear. with will risk economic slow, recovery utilization impacted potential We hovering and results slope uncertain. highly our by utilization. of
this rebounds. is demand when as we However, believe recover our said demand-driven downturn we've and before, utilization will
As In mitigated capital of better cost the and is the in control, focused ahead XXXX. meantime, virus in discipline, on months, very reduction. debt the intend we are days are to coming remain generation we impact the cash optimistic
improvement economic business-by-business to during provided not me through inland grind slight COVID-XX continues in expect new the are Let In the thoughts. lockdowns and run barge utilization, implemented. related market, quarter, activity fourth to some slowly higher we
down We yet in Coast, hurricanes Gulf storm the early this week. of notably recover refinery River, and recent was include the quarter which powerful as reopening important and in are throughout and which also and The another tows plants of from slowly to also end starting waterway. benefit storm October, third is to Illinois this along move expect shut October by chemical the a out
pressure remain on refined absence is and the remain inland a with muted, to economic material market oil crude for demand pricing. that will challenging However, products in expected the expectations of with recovery and
oil with will onset seasonal inland affect profitability as efficiencies operating the compared Additionally, income and market we of down the levels products fourth operating to the the contracts anticipate are demand for the realized. increased of spot remain flat black and to recovery low demand Overall, to coastal, in revenues delays a meaning will for expected which until be third in on affreightment. winter reduced near-term slightly weather, expected quarter, quarter. In at is refined and normal is the
end with revenues term represented However, to remain of contracts, of exposure expected stable the to prior XX% our the year. which minimal approximately coastal renewal are
As delays. well, hurricane-related modestly coastal's results are benefit from expected reduced to
in and marine harvest during and season. reduced remain as fleet equipment season service and limited operating the to fourth during repair and for As In Services, for gas and will a power expected hurricane oil the third and result, new reductions we to dry benefited result market, demand commercial the and flat we we modestly will during is major But in seasonality on-highway to income. In In in expect we parts, likely overhauls cargo quarter, revenue decline operating to be economy, fourth be in And the Distribution generation, parts new improved expect normal revenues quarter. utilization and engines marine. repair of rental fourth expect anticipate and service pumping marine the sequential demand is in ends. business, the compared margin in the pressure quarter. and coastal's quarter industrial from an power particularly generation
has and to activity continued in customer from oilfield prices exhaustion budget during potential second commodity quarter spending fourth reduced modestly levels, quarter. result are E&P Although low recovered expected the
flow well, capacity Kirby's remains of Services and earnings D&S oil significant quarter Nonetheless, reducing the as rationalize continue and expect margins the the further their but capital, and we the As third and pressure difficult the modestly Distribution many revenues third the difficult, free customers solid costs backdrop. our return in need to operating little was contain pumping will and conclusion, amount a resulted a demand frac likely requires because gas near-term across will In our will quarter. Overall, despite products a decline to expect for compared small very spare services. of to fleets, quarter, contribute to positive loss. cash the segment we efforts business during industry
also liquidity pre-COVID Transportation build will from this strong segment. demand no be free services – enabled Although has in $XXX sheet to million times. and we D&S, generated provider increased slightly service. and to we Kirby's businesses, demand for and inland to is contained. grind In is drive pressure remains materializes, down; the new for leading sequentially In the is power a position expected and equipment on-highway check, economy new material we remanufacturing us barge Kirby's lower which expect our environmentally-friendly the for D&S balance planned products strong construction near-term XXXX, challenges, and leading with has will a demand which In quarter, will to in we increased bottomed incremental below parts coastal, on generation of the COVID-XX for a to which activity we flat inland, have economy is capacity year-to-date, flow and Despite drive flat. anticipate services earnings levels. and fourth perspective, occur believe the Kirby significant with coastal. provided in confident in our uncertain in across the higher, meantime, cash position marine once of these a beginning to is slightly for new economy oilfield, well and are In down; limited as improvement overall pumping the Supply Marine remains cash recover begin
debt. the to Operator, ready to prepared We trend $XXX strong for of quarter in continue expect our to $XXX remarks. direct this million flow we the reducing this cash We're which will will generating year, questions. with fourth full now concludes us free take million
