Persistently Negative Free Cash FlowConsistent negative free cash flow forces ongoing external financing to fund capex and dividends, raising dependency on debt/equity markets. Weak cash conversion reduces internal flexibility, elevates refinancing and liquidity risk across a multi-year capex cycle and limits reinvestment capacity.
Elevated LeverageRising debt-to-equity compresses balance-sheet headroom and increases interest and covenant sensitivity as capex continues. Higher leverage constrains capital allocation options, could raise borrowing costs, and narrows the margin for rate/timing mismatches or regulatory lag in recovering investments.
High Capital Expenditure And Depreciation PressureA large sustained capex program increases execution risk, near-term financing needs and depreciation expense, which can depress reported EPS until rate relief is secured. The timing mismatch between investment and regulatory recognition can create multi-period earnings drag and funding strain.