Rising LeverageLeverage has climbed meaningfully, driven by capex and financing of growth projects. Higher debt levels reduce financial flexibility, increase interest sensitivity if rates remain elevated, and constrain room for adverse shocks or additional opportunistic investments without deleveraging.
Weak/volatile Operating Cash ConversionProfitability is not consistently converting to operating cash, with large year‑to‑year swings. This increases risk to funding steady capex, dividends and debt servicing, making cash planning harder and raising the reliance on external funding during weak cash cycles.
Hydrology And Curtailment RiskHydrological stress drove higher energy purchase costs and significant curtailment, creating earnings volatility in generation and trading. As hydrology is cyclical and partly uncontrollable, it remains a structural earnings risk for a hydro‑heavy generator influencing margins and short‑to‑medium term cash flows.