Historical Revenue And Income VolatilityDocumented volatility in revenue and net income complicates long-term planning: unpredictable production, impairments or swings in output can produce uneven cash flows, making capital allocation and sustained dividend policies harder to maintain over several quarters.
Declining EPS GrowthA sharp year-over-year EPS decline signals profit pressure from either operational setbacks, nonrecurring charges, or weaker realized prices. Continued EPS contraction would erode retained earnings and could constrain investment, payouts or capacity to absorb shocks.
Exposure To Commodity, Reserve And FX RisksAs an upstream E&P business, earnings and cash flow materially depend on commodity prices, reserve replacement and FX on overseas projects. These structural exposures drive cyclical performance and can necessitate high capex or impairments, pressuring long-term cash conversion.