Relatively High LeverageSignificant leverage raises refinancing and interest-rate sensitivity risk over the medium term. In a higher-rate environment or if cash flows weaken, elevated debt levels can constrain capital allocation, increase financing costs, and limit ability to fund growth or absorb shocks.
Volatile Free Cash Flow Due To CapexHeavy, lumpy capex drives negative and volatile free cash flow despite solid operating cash generation. Persistently negative FCF reduces liquidity flexibility, makes debt servicing and dividend funding more dependent on continued strong operating performance or fresh financing.
Exposure To Merchant Market & Fuel CostsSales on merchant markets and thermal fuel cost pass-through limitations expose earnings to commodity and demand cycles. Structural volatility in fuel prices or weaker power demand can compress margins and make earnings and cash flows less predictable over the coming months.