Very High LeverageAn extreme debt-to-equity ratio materially increases refinancing, interest-rate and covenant risk. High leverage reduces financial flexibility for investing or absorbing shocks, making the company sensitive to rate moves and limiting its ability to deleverage quickly without sustained cash generation or asset sales.
Thin, Volatile Free Cash FlowFree cash flow is small relative to earnings and has been inconsistent, meaning less cash is available to reduce debt, invest or return capital. Persistent FCF volatility driven by capex and working-capital swings constrains deleveraging and increases refinancing vulnerability over the medium term.
Exposure To Fuel, Efficiency And Dispatch RiskThermal generation margins depend heavily on coal procurement, heat rates and dispatch priority. Fuel-price swings, lower utilization or adverse dispatch decisions can compress margins and earnings durability, making profitability and cash generation sensitive to structural commodity and regulatory trends.