Negative ProfitabilitySustained negative EBIT and net margins indicate underlying operational or pricing pressure. Over time this hampers retained earnings, undermines the ability to self-fund projects, and pressures returns on invested capital, limiting scalability and shareholder value creation without clear path to margin recovery.
Negative Free Cash Flow & Poor ConversionNegative free cash flow and weak cash conversion signal reliance on external financing to fund operations and growth. Structurally this raises vulnerability to financing cost increases, limits optionality for new projects, and may force asset sales or dilution unless operating cash generation materially improves.
High LeverageA debt-to-equity ratio near 1.6 denotes significant leverage for a project-centric energy firm. Elevated debt increases interest burden and refinancing risk, constrains balance sheet flexibility for new investments, and amplifies downside in cash-flow stress periods, affecting long-term financial resilience.