Negative ProfitabilitySustained negative net margin and ROE signal structural profitability pressure that limits internally generated equity returns. Without persistent margin recovery, the company faces constraints on reinvestment, dividend sustainability and the ability to self-fund the transition to more capital-intensive renewables and firming assets.
Weak Free Cash FlowSharply negative free cash flow growth reduces funding available for capex, debt reduction and shareholder returns. Over a multi-quarter horizon this raises reliance on asset sales, external financing or dividend cuts and increases execution risk for multi-year development projects.
Higher Depreciation, Finance Costs & Net DebtRising depreciation and finance costs from recent growth investments elevate fixed charges and interest sensitivity. Increased net debt to fund projects tightens covenant and credit headroom, making earnings more vulnerable to margin or wholesale price volatility over the medium term.