Rising LeverageLeverage more than doubled in one year, materially reducing financial flexibility. Higher debt amplifies interest expense and refinancing risk, making the company more vulnerable to commodity cycles and raising the chance of capital constraints during extended downturns.
Cash-flow DeteriorationA sharp reversal to negative OCF signals volatile cash conversion and elevates short- to medium-term liquidity risk. Persistent or recurrent negative free cash flow would force external financing, asset sales, or curtailed investment, impairing long-term competitiveness and growth.
Margin Compression And Recent Revenue DeclineFalling revenue and compressed net margins reduce retained earnings and enterprise resiliency. In a low-margin commodity sector, diminished profitability cuts reinvestment capacity and increases sensitivity to cost shocks, threatening sustainable returns and long-term value creation.