Sharp Deterioration In Cash ConversionA severe decline in operating and free cash flow reduces internal funding for capex, debt reduction and dividends. Even with accounting profitability, weak cash conversion strains liquidity and increases reliance on external funding or dividend cuts if the trend persists over the medium term.
Earnings Volatility Year-to-yearWide swings between a net loss and a strong profit weaken confidence in recurring earnings. For regulated utilities, volatility complicates long-term planning, may signal timing or nonrecurring items, and raises the risk that dividends and reinvestment plans will need adjustment if earnings revert unpredictably.
High Absolute Debt Vs Equity BaseAlthough leverage ratios improved, the absolute debt stock is still large relative to equity. That limits maneuverability if cash flow weakens, increases exposure to interest or refinancing stress, and could constrain funding for strategic transitions like renewable gas or hydrogen projects.