Earlier today, we announced adjusted earnings of $0.17 per share for the 2021 third quarter, which excludes a onetime noncash charge totaling $4.58 per share related to our coastal marine business.
On a GAAP basis, we reported a net loss of $4.41 per share.
Vehicle miles traveled in the U.S. declined, including an overall 4.4% decline in August, with all regions of the U.S. impacted.
At the height of the storm, more than two million barrels of refinery capacity per day was offline, reducing PADD three refinery utilization from 93% in August to 79% in September.
In the petrochemical sector, with nearly the entire complex shut down operating rates at nameplate ethylene plants in the Southeast -- excuse me, in Southeast Louisiana declined from 89% in August to 24% in September, and production fell as much as 75% compared to August.
It's been estimated that as many as 2,000 dry cargo and tank barges were damaged during the storm, which included 30 Kirby tank barges.
Overall, we estimate the damage caused by the hurricane on our equipment directly contributed to lost revenue and additional costs totaling approximately $0.08 per share during the third quarter.
More importantly, we took significant actions to improve our coastal business, including the sale of our Marine Transportation assets in Hawaii and the retirement of 12 laid-up wire tank barges and four tugboats in the coastal fleet.
This growth contributed to 25% sequential growth in oil and gas revenues and positive operating margins for the first time in more than two years.
The good news is that we have seen a significant improvement in inland market fundamentals in recent weeks, with increasing customer demand and higher barge utilization in the high 80% range.
During the third quarter, we sold our coastal Marine Transportation assets in Hawaii, including four tank barges and seven tugboats for cash proceeds of $17.2 million.
We also retired 12 wire tank barges and four tugboats, which had limited customer acceptance and low utilization.
These events resulted in a noncash impairment charge of $121.7 million.
As a result, the company concluded that a triggering event had occurred and performed interim quantitative impairment test on coastal goodwill, which resulted in a noncash impairment charge totaling $219 million.
In total, the company recorded a noncash impairment related to coastal marine equipment and associated goodwill totaling $340.7 million before tax, $275 million after tax or $4.58 per share.
In the third quarter, Marine Transportation revenues were $338.5 million with an operating income of $16.9 million and an operating margin of 5%.
Compared to the 2020 third quarter, marine revenues increased $17.9 million or 6%, primarily due to higher fuel rebuilds in inland and coastal as the average cost of diesel fuel had increased 76%.
Operating income declined $15.5 million primarily due to Hurricane Ida, lower term contract pricing and increased maintenance.
Compared to the 2021 second quarter, marine revenues increased $5.6 billion or 2% due to modest improvements in coastal barge utilization and increased fuel rebuilds.
Operating income declined $1.6 million as a result of sales mix, increased horsepower costs and the impact of Hurricane Ida.
During the quarter, the inland business contributed approximately 76% of segment revenue.
Average barge utilization was in the low 80% range, which was slightly down compared to the second quarter, but improved compared to the low 70% range in the 2020 third quarter.
Long-term inland Marine Transportation contracts or those contracts with a term of one year or longer contributed approximately 65% of revenue, with 56% from time charters and 44% from contracts of affreightment.
Compared to the 2020 third quarter, inland revenues were up 3% due to significant increases in fuel rebuilds and improved barge utilization, offset by lower average pricing on term contracts.
Overall, the inland market represented 76% of segment revenues and had an operating margin in the mid- to high single digits.
In coastal, spot market conditions improved modestly, resulting in barge utilization in the mid-70% range during the quarter.
During the third quarter, the percentage of coastal revenues under term contracts was approximately 80%, of which approximately 85% were time charters.
Revenues in coastal increased 4% sequentially and 13% compared to the 2020 third quarter, primarily due to higher fuel rebuilds and modest increases in spot market activity.
Overall, coastal represented 24% of Marine Transportation segment revenues and at a negative operating margin in the low single digits.
Revenues for the 2021 third quarter were $260.4 million, with an operating income of $11 million and an operating margin of 4.2%.
Compared to the 2020 third quarter, Distribution and Services revenue increased $84.4 million or 48%, and operating income improved $9.9 million.
Compared to the 2021 second quarter, revenues increased $33.7 million or 15%, and operating income increased $4.9 million.
During the third quarter, commercial and industrial revenues increased 9% sequentially and 20% year-on-year.
Overall, the business represented approximately 59% of segment revenue and had an operating margin in the mid-single digits.
During the third quarter, oil and gas revenues increased 25% sequentially and 120% year-on-year.
Overall, the oil and gas-related businesses represented approximately 41% of segment revenue and had an operating margin in the low to mid-single digits.
As of September 30, we had $54 million of cash and total debt of $1.21 billion, with a debt-to-cap ratio of 29.8%.
Since the Savage acquisition of April 1, 2020, we have repaid nearly $500 million in debt.
During the quarter, we generated strong cash flow from operations of $83 million, net of capital expenditures of $34 million.
Free cash flow was $49 million.
We also sold assets with net proceeds of $22 million during the quarter, primarily composed of coastal marine assets in Hawaii.
At the end of the quarter, we had total available liquidity of $908 million.
As of this week, our net debt has been further reduced to $1.2 billion.
For the full year, we expect capital spending to be approximately $120 million to $130 million, which represents more than a 15% reduction compared to 2020 and is primarily composed of maintenance requirements for our marine fleet.
We also expect to generate free cash flow of $250 million to $290 million for the full year.
Lastly, from a tax perspective, we expect an effective tax rate of approximately 29% in the fourth quarter.
During October, our barge utilization has been in the mid-80% to high 80% range, with recent utilization at the high end of that and in the high 80s.
Overall, inland revenues are expected to sequentially increase in the fourth quarter, with operating margins improving to around 10%.
The recent retirement of the wire barge marine equipment will result in coastal barge utilization being around 90% for the fourth quarter.
In inland, our barge utilization has recently touched 90%, with October averaging in the mid- to high 80% range.
In coastal, although market conditions remain challenging, recent improvements in the spot market should lead to barge utilization around 90%.

Summary:
Earlier today, we announced adjusted earnings of $0.17 per share for the 2021 third quarter, which excludes a onetime noncash charge totaling $4.58 per share related to our coastal marine business.
On a GAAP basis, we reported a net loss of $4.41 per share.
For the full year, we expect capital spending to be approximately $120 million to $130 million, which represents more than a 15% reduction compared to 2020 and is primarily composed of maintenance requirements for our marine fleet.