Operating Profitability DeteriorationA sharp EBIT margin fall (from ~25% to ~2%) signals weaker earnings quality and higher cost or pricing pressure. Persistently compressed margins limit internal funding for capex, increase sensitivity to commodity swings, and raise risk of future impairments if not reversed.
Volatile, Negative Free Cash FlowSustained negative and volatile free cash flow threatens funding sustainability: it may force asset sales, partner funding, or external financing to meet development obligations, constraining strategic choices and heightening execution risk for future value-adding appraisal activity.
Declining Revenue TrendConsecutive year revenue declines reduce scale and operating leverage, making margins more vulnerable to fixed costs and transport/processing charges. Continued top-line erosion would weaken cash generation and diminish the company's ability to fund growth or withstand lower commodity cycles.