Rising LeverageLeverage has increased materially over recent years, reducing balance-sheet flexibility. Higher indebtedness raises refinancing and interest-rate sensitivity and leaves less room for downside earnings volatility or larger discretionary investments without further debt management actions.
Weak/Volatile Operating Cash ConversionOperating cash flow has been volatile and converts inconsistently to reported earnings, indicating timing, working-capital or market exposure issues. This undermines the reliability of internally generated funds for capex and dividends and may force recurring reliance on external financing when cash dips.
Hydrology & Energy Purchase Cost RiskStructural exposure to hydrological cycles and elevated curtailment increases the need for market purchases and curtails generation revenues, creating recurring cost pressure and earnings volatility. This fundamental market risk can persist across operating cycles and complicate medium-term margin stability.