You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: Although we face some continued market challenges during the third quarter, including the impact of Hurricane Ida and the lingering COVID-related impact on our international operations, we are encouraged by the improving market dynamics in the oil and gas sector and remain focused on ongoing efforts to reshape our U.S. Fluids business.
Our third quarter was highlighted by continued strength in Site and Access Solutions product sales along with notable progress in our Fluids recovery.
Consolidated revenues improved 7% sequentially to $152 million including 11% improvement in Fluid Systems.
Consolidated third quarter EBITDA generation was $4 million, which includes $4 million of charges associated with Hurricane Ida as well as costs associated with restructuring our U.S. Fluids business.
Turning to the specifics of the segment.
The strong performance from our Industrial Solutions business continued in the third quarter, demonstrating the value of our diversification efforts as we expand our presence in the power transmission and other industrial end markets.
While the third quarter was impacted by the typical seasonal slowdown in T&D project activity, the seasonal low was largely offset by a $4 million increase in site access product sales, reflecting the benefit of our expanding presence outside of oil and gas.
With a modestly lower revenue and shift in mix, our Industrial Solutions operating margin declined 18% in the third quarter, generating $13 million of EBITDA.
Through the first three quarters of 2021, we remain very pleased with the momentum we are building particularly within the multibillion-dollar transmission access market.
Year-to-date, we generated $108 million of site access revenues from the power transmission and other industrial markets, which puts us on a pace for nearly $150 million of revenues for the full year 2021, a 25% improvement from our previous high mark.
This revenue level and growth rate reflects significant progress in our power transmission market penetration, which is a key component of our strategy.
Turning to our Fluid Systems.
Total segment revenues improved 11% sequentially primarily driven by strength in the Canadian market as well as our other international markets.
In North America, revenues improved by 14% sequentially to $71 million, substantially all driven by the Canadian market.
U.S. revenues remain in line with prior quarter with modest improvements in land activity offset by a $2 million weather-related decline in the Gulf of Mexico.
International revenues improved 6% sequentially to $37 million in the third quarter, with our expansion in Asia Pacific being the primary driver of the improvement, while certain areas in the EMEA region continued to be negatively impacted by COVID-related restrictions.
Benefiting from the revenue improvement as well as our ongoing efforts to reshape the U.S. Fluids business, the Fluid Systems segment made progress toward a return to positive cash flow generation.
As another sign of the international market recovery, I'd like to highlight that we received a five-year award in Albania from Shell Oil as they look to return to drilling activity in early 2022, which we believe will generate roughly $5 million of revenue per year.
We've had a strong history with Shell in Albania, though the upcoming contract reflects their first drilling activity in this country since 2019.
And with that, I will hand the call over to Gregg to discuss in more detail our financials for the third quarter.
I'll begin by covering the specifics of the segment and consolidated financial results for the quarter before providing an update on our near-term outlook.
Total revenues for the Industrial Solutions segment declined 3% sequentially to $44 million in the third quarter.
Site and Access Solutions business contributed $42 million of the segment revenues in the third quarter including $28 million of rental and service revenues and $14 million of product sales.
As discussed on our August call, the third quarter was impacted by the typical seasonal slowdown in T&D project activity, which led to a $5 million decline in rental and service revenues following the strong Q2 results.
This decline was largely offset by a $4 million increase in revenues from product sales, benefiting from our expanding customer base in the utility sector.
Industrial blending contributed $2 million of the segment revenues in the third quarter, in line with prior quarter levels.
As discussed last quarter, although our primary industrial blending customer experienced a decline in consumer demand for disinfectant and cleaning products and canceled their orders early in the third quarter, revenues remained flat sequentially largely due to the cancellation fee provisions within our customer contract.
With the modestly lower revenues, the Industrial Solutions segment operating income declined by $2 million sequentially to $8 million, contributing $13 million of EBITDA in the third quarter.
As highlighted last quarter, the Q2 results included a $1 million gain associated with the enforcement of our patent rights.
Comparing to the third quarter of last year, revenues from the Site and Access Solutions business increased $13 million or 46%.
This increase includes an $8 million improvement in product sales along with a $5 million or 22% improvement in rental and service revenues.
Looking at the year-to-date 2021 performance for the Industrial Solutions business, as Paul touched on, we're continuing to see a significant shift within our segment revenue mix.
Through the first three quarters, the power transmission end market contributes more than half of our Industrial Solutions segment revenues, while our historical E&P market activity accounts for less than 20%.
Now turning to Fluid Systems.
Total segment revenues improved by 11% sequentially to $108 million in the third quarter primarily driven by improvements in Canada and other international markets.
Revenues from U.S. land increased 4% sequentially to $51 million, reflecting the benefit of the 11% improvement in market rig count as our market share remained relatively stable.
Revenues from the Gulf of Mexico declined by $2 million, contributing $6 million in the third quarter, largely reflecting the weather-related impact on our customers' operations.
In Canada, revenues nearly tripled sequentially to $14 million in the third quarter, meaningfully outpacing the market rig count improvements following spring breakup.
Outside of North America, although we are seeing continued recovery in customer activity levels, the global surge in the COVID Delta variant caused some delays to customers' plans in certain EMEA markets, hampering the pace of recovery.
International Fluids revenues improved 6% sequentially to $37 million in the third quarter, with our ongoing expansion in Asia Pacific being the primary driver of the improvement.
As Paul touched on, with the sequential revenue growth in the third quarter, we saw continued progress in returning the Fluids Systems segment to profitability, although the $4 million of charges related to Hurricane Ida and our ongoing cost actions largely offset the improvements, keeping the Fluids Systems reported operating loss flat sequentially at $7 million for the third quarter.
Contributing to this improvement, we achieved a modest net improvement in pricing for this quarter while passing on inflationary impact of raw materials and transportation costs.
On a year-over-year basis, our Fluids Systems revenues increased $40 million or 59%.
North America land revenues nearly doubled year-over-year, fairly in line with the market rig count, while Gulf of Mexico decreased modestly.
International revenues improved $12 million or 47% year-over-year, benefiting from new project start-ups and the recovery of customer activity in several European markets and Algeria.
SG&A costs were $24 million in the third quarter, which includes $7.5 million of corporate office expenses, reflecting a $1 million increase from the prior quarter.
The sequential increase in both SG&A and corporate office expense is primarily attributable to the timing of long-term incentive expense along with the full lifting of salary austerity measures put in place during 2020.
Comparing to the third quarter of last year, SG&A costs increased $3 million, including a $1 million increase in corporate office expense.
The year-over-year increase in SG&A primarily reflects higher personnel costs including higher incentive expenses in the Industrial Solutions segment and Canada as well as the $1 million increase in corporate office expense.
Interest expense remained stable at $2.2 million for the third quarter, nearly half of which reflects noncash amortization of facility fees and discounts.
Our weighted average cash borrowing rate on our outstanding debt is approximately 3.25%.
The third quarter includes a $2 million income tax expense despite reporting a pre-tax loss.
We are currently unable to recognize the tax benefits on our U.S. losses, and therefore, the income tax expense primarily reflects taxes on foreign earnings.
Our reported net loss in the third quarter was $0.11 per share, which included $0.04 of charges and compares to a net loss of $0.07 per share in the second quarter.
Reported net loss in the third quarter of last year was $0.26 per share, which also included $0.04 of charges.
Turning to third quarter cash flow.
Cash used in operating activities was $12 million including $14 million of cash usage associated with a net working capital increase.
Substantially all of the working capital increase is attributable to growth in receivables with the majority in Canada and our international Fluids operations.
While partially driven by the improving revenues in these regions, much of the receivable increase is reflective of elevated DSOs driven by the timing of activity within the quarter, which we expect will normalize next quarter.
Investing activities used $6 million of cash in the third quarter, substantially all of which reflects mat rental fleet additions in preparation for fourth quarter rental projects.
It's worth noting that through the first three quarters of 2021, investments in the rental fleet totaled $13 million, the majority of which replaces mats sold from the rental fleet as part of our standard commercial offering.
Consequently, while gross capital expenditures totaled $19 million year-to-date, our net capital investments are only $7 million.
We ended the third quarter with a total debt balance of $94 million and cash balance of $31 million, resulting in a modest 17% debt-to-capital ratio and 12% net debt-to-capital ratio.
Our net debt increased by $20 million in the quarter, largely reflective of the elevated receivables as well as the additional capital investments to support our Industrial Solutions growth efforts.
Our increase in debt was fairly balanced between the U.S. and international loan facilities.
We also purchased $10 million of our outstanding convertible bonds in the open market during the quarter, resulting in a small loss on extinguishment of debt.
We ended the third quarter with $24 million outstanding on our U.S. asset-based loan facility.
And after providing for the $39 million convertible bond maturity next month, we have $42 million of remaining availability.
Now turning to our near-term operational outlook.
As we look ahead, we remain encouraged by the strength in the longer-term fundamentals across all major energy sectors, though we continue to see significant inflationary pressures on raw materials, transportation and labor costs as well as increasing lead time requirements for many purchases.
In the Site and Access Solutions business, we've experienced a meaningful recovery in rental projects in recent weeks following the seasonally soft Q3.
We have several power transmission projects now underway including our first large-scale project in Florida following last year's expansion into the Southeast U.S. market.
In addition to the stronger rental and service activity, we expect the fourth quarter to benefit from the typical year-end strength for product sales into the power transmission sector.
Meanwhile, revenues from industrial blending are expected to remain limited in the near term as we look to replace the disinfectant sales volume.
In total, we expect Industrial Solutions segment revenues of roughly $50 million, with the level of year-end demand for product sales being the greatest variable.
At that revenue level, we expect segment operating margin to remain relatively stable to Q3 primarily impacted by the following factors: first, the significant surge in raw material cost for mats combined with the competitive pricing environment; second, a change in the mix of rental projects with lower pricing on a few of the larger-scale, longer-duration projects; and third, the lack of near-term industrial blending production volume.
With the anticipated Q4 performance, the Industrial Solutions segment is expected to deliver more than $190 million of revenues for the full year 2021, just shy of our 2019 results, while also generating more than $60 million of full year EBITDA.
This comparison to 2019 highlights the successful transformation in this segment as the strong revenue growth in the power transmission and other industrial end markets is expected to substantially offset the more than $50 million decline in annual revenue derived from the E&P sector as compared to 2019.
In Fluids Systems, we anticipate most regions will continue to strengthen in the near term, benefiting from the strong commodity prices and the gradual easing of COVID-related restrictions around the world.
In North America, we expect revenues will remain relatively stable with improvements in U.S. land mostly offset by the typical holiday-driven slowdown in December.
Although we previously anticipated a meaningful improvement in the Gulf of Mexico activity in the fourth quarter due to the start-up of a second drillship with Shell, recent changes in Shell's plans for this drillship have now pushed this activity by several quarters.
Internationally, while the COVID Delta variant surge has tempered the pace of recovery, we expect international revenues to improve by a mid-teens percentage in Q4, benefiting primarily from higher customer activity in Africa with continued international recovery expected into early 2022.
In total, we anticipate our Fluids segment revenues to grow by a mid-single-digit percentage in Q4.
And although the change in Shell activity in the Gulf of Mexico provides an unfavorable headwind, we expect Fluids segment operating income will be roughly breakeven for the fourth quarter prior to the cost of any further restructuring, including a solid earnings contribution from our international operations along with improvements in the U.S. Looking beyond Q4, with the improving outlook for the oil and gas sector and particularly benefiting from our meaningful international presence combined with the impacts of our ongoing actions to reshape our U.S. operations, we expect revenue growth in 2022 will continue to deliver solid incremental margins and drive further improvements in Fluids profitability.
Corporate office expense is expected to remain fairly flat in the near term then decline modestly in the first quarter and beyond.
Also, with the December one maturity of our remaining $39 million of convertible bonds, we expect interest expense to step down modestly in Q4 then level off at roughly $1 million of quarterly interest expense in 2022.
With the sequential improvement in both segments and the modest decline in interest, we expect consolidated pre-tax income to be roughly breakeven for Q4 prior to restructuring charges.
With regard to Capex, we expect expenditures in the near term will remain fairly limited with investments focused on growth opportunities within the Industrial Solutions segment.
Total net Capex for the full year 2021 is likely to come in around $10 million.
It's also worth noting that as we look beyond the repayment of our upcoming convertible bond maturity in December, in addition to funding the expansion of our Industrial Solutions business and working capital needs of the business, we will look to resume returning value to shareholders in 2022 through purchases of outstanding stock under our existing share repurchase program.
I'd like to take a moment to elaborate on my recently announced decision to retire as CEO of Newpark.
I have also decided that upon my retirement, I will resign as a member of the Board.
As I reflect on my 15 years as the company's President and CEO, I'm extremely proud of all we have accomplished and the unique culture we have created.
While there is never a perfect time to retire, I believe the time is right, having turned 65 earlier this year and with the executive leadership team in place to continue on Newpark's journey.
I'd now like to hand the call over to Matthew Lanigan, who was recently promoted to President and Chief Operating Officer,and will ultimately succeed me as CEO upon my retirement.
As many of you know, Matthew has been with Newpark since 2016, where he led the transformation and diversification of our Industrial Solutions business.
I'm confident that Matthew, along with the rest of the Newpark leadership team, will do an outstanding job building upon the platform we have all worked to create and deliver long-term value for our shareholders.
It's an honor to have been selected as Newpark's CEO upon Paul's retirement.
I've had the good fortune to work very closely with him over these last five years and appreciate the profound impact he has had at Newpark including the establishment of a culture with unwavering commitment to safety, compliance and operational excellence.
Equally, I feel very fortunate to be surrounded by an exceptionally strong senior leadership and employee teams, all of whom who are committed to our core values and driving our long-term strategy across the business.
As I look to step into the role of CEO in the coming months, I wanted to provide a few thoughts regarding Newpark's focus going forward.
Consistent with our long-term planning process and as highlighted in the past, we'd continue to work closely with the management team along with our Board of Directors to evaluate various alternatives to generate value for our shareholders.
With ongoing support from outside financial and other advisors, we have continuously reviewed our portfolio during this unprecedented oil and gas market downturn and assessed necessary adjustments in course.
These reviews are focused on evaluating changes in the outlook of our served markets and customer priorities while identifying opportunities for value-creating options in our portfolio as well as placing investment emphasis in markets where we generate strong returns and where we see greater long-term viability and stability.
We remain encouraged by the progress we are making in the Industrial Solutions segment and our international Fluids business.
However, we recognize that the U.S. and Gulf of Mexico oil and gas markets are facing prolonged headwinds necessitating consideration of broader structural changes to transform this business for the new market realities.
Regarding our ongoing focus on innovation, we must continue to deploy our industry-leading sustainable products and services into markets where we uniquely meet the needs of our customers and generate acceptable returns.
Newpark is no stranger to taking the lead in developing solutions that provide meaningful impact to our customers' environmental footprint as well as providing industry-leading service to support them.
This focus, which goes back well over a decade, will continue to guide our investments in product and service development.
We will also remain focused on our unyielding commitment to safety and to acting in a manner consistent with Newpark's core values.
Nothing is more important than keeping our employees, customers and other stakeholders safe and being a company that is trusted to always do the right thing from a values and compliance perspective.
I look forward to sharing more about Newpark's strategy and key priorities on future calls.

user
net loss for q3 of 2021 was $0.11 per share.

assistant