Ongoing Losses And Negative Cash FlowSustained negative earnings and operating cash flows erode internal funding capacity and limit reinvestment. Over months this necessitates external financing or asset sales, increases vulnerability to cost shocks, and undermines ability to execute multi-period development plans without dilution.
Material Erosion Of Equity BaseA steep drop in shareholders' equity weakens the capital cushion that absorbs operational losses or reserve write-downs. This reduces borrowing capacity despite low debt, heightens insolvency risk in adverse scenarios, and makes future financing more dilutive or costly, pressuring long-term resilience.
Explicit Capital Need And Execution RiskManagement's stated requirement for additional capital creates structural execution risk: funding could entail dilution, asset divestitures, or higher-cost debt. If capital is not secured on favorable terms, development schedules and production maintenance may be delayed, impairing medium-term value creation.