High Financial LeverageLeverage consistently above ~2x amplifies exposure to interest rates and refinancing cycles, increasing cash-flow stress if generation or prices soften. For a power generator with variable output and market pricing, high debt raises solvency and funding-risk over the medium term.
Weak And Volatile Cash GenerationOperating profits are not reliably converting to free cash flow; recent negative FCF suggests higher capex, working capital strain, or timing gaps. Persistent weak cash conversion undermines debt service capacity, constrains organic project funding, and elevates reliance on external financing.
Revenue VolatilityMaterial swings in revenue reduce forecasting visibility and complicate capital planning for long‑life assets. For an IPP, erratic top-line trends heighten the risk that capital allocation, dividends, or debt amortization plans will need frequent adjustment, increasing execution risk.