Declining Profitability MetricsA materially lower net margin halves prior profitability levels and diminishes retained earnings available for reinvestment. Persistently compressed margins will reduce ROE and limit capacity for capex or shareholder returns, increasing sensitivity to commodity price swings.
Weak Free Cash Flow ConversionA sharp drop in free cash flow and poor conversion of earnings into FCF constrains ability to self-fund exploration, capex, or sustainable dividends. Over the medium term this raises reliance on external financing and limits strategic optionality during downturns.
Exploration And Market UncertaintyJV complications and delayed sub-salt work defer potential material resource upside into mid-2027 or later. Coupled with stated long-term gas market uncertainty, this reduces near-term visibility on reserve growth and cash flow expansion from exploration successes.