Sharp Decline To Net LossesA substantial net loss erodes retained capital and undermines internal funding capacity for maintenance, development or distributions. Persisting losses can force equity raises or asset disposals, impairing strategic flexibility and increasing cost of capital over the medium term.
Negative Operating And Free Cash FlowNegative operating cash flow and collapsing free cash flow create persistent liquidity pressure, forcing reliance on external financing. Over months this raises refinancing risk, limits capital expenditure and development activity, and can necessitate asset sales that impair strategic positioning.
Weakening Equity And Rising Leverage RiskDeclining equity alongside stable or rising net debt increases leverage, reducing balance-sheet resilience. Higher leverage limits capacity to pursue opportunistic acquisitions, raises interest vulnerability and can force deleveraging under stress, constraining long-term growth and asset management plans.