High LeverageDebt at roughly 1.8x equity constrains balance sheet flexibility and increases vulnerability to interest‑rate moves or weaker cash flow. Elevated leverage makes the company more likely to need external funding or equity if projects slip, amplifying downside over the next several quarters.
Earnings Volatility / ImpairmentsA material noncash impairment (Nordsee One) and resulting full‑year net loss show that below‑the‑line items and asset write‑downs can swing reported profitability. Such volatility undermines sustainable ROE and can recur if projects underperform or assumptions change, affecting investor confidence.
Execution Concentration RiskReliance on a few large offshore projects (Hai Long, Baltic Power) concentrates execution risk: weather or commissioning delays can push EBITDA and cash receipts, and may necessitate ~C$150–200M equity injections. This raises funding and timing risk across the 2–6 month window.