Weak ProfitabilityNegative net margin and near-zero EBIT margin signal persistent operating-cost pressure and limited pricing or operating leverage. Over 2-6 months this constrains internal cash generation, reduces resilience to lower commodity prices, and means management must cut costs or boost margins to reach sustainable profitability.
Deteriorating Free Cash FlowA halving of free cash flow and materially negative FCF-to-income indicate weak cash conversion after capex and working capital. Structurally this raises the risk of needing external funding, delays project development, or increases dilution risk if cash performance doesn't recover within the medium term.
Poor Returns On EquityConsistently negative ROE implies capital is not yielding adequate returns and points to capital allocation or operational inefficiency. Over months this undermines shareholder value creation, complicates fundraising, and can pressure management to restructure assets or strategy to meet investor return expectations.