High LeverageMaterial leverage constrains financial flexibility and raises refinancing risk, especially during a heavy capex cycle. Elevated debt amplifies sensitivity to rate moves and market shocks, limiting the company’s ability to fund growth or absorb prolonged downturns without asset sales or equity issuance.
Materially Negative Free Cash Flow In 2024Significant negative FCF driven by capex reduces internal funding for dividends and debt service, increasing reliance on external financing or disposals. Persistent negative FCF through the newbuild cycle could pressure liquidity and raise execution and covenant risks.
Execution And Funding Risk From Large Newbuild ProgramA concentrated 20-vessel newbuild schedule creates execution risk (timing, delivery, cost overruns) and sizeable near-term funding needs. Delays or cost growth could strain cash, increase leverage, and alter fleet availability, impacting revenue and margin sustainability over the medium term.