Elevated And Rising LeverageMaterial increase in debt and a very high debt-to-equity ratio materially elevates financial risk. High leverage constrains flexibility to fund development, increases interest and refinancing exposure, and can force asset sales or dilutive financing during downturns, limiting long-term strategic optionality.
Negative Operating And Free Cash FlowA swing to negative operating and free cash flow reduces internal funding for projects and debt service, heightening reliance on external capital. Persistent negative cash conversion raises execution and solvency risk, can delay project completions, and increases cost of capital over the medium term.
Highly Volatile Revenue And EarningsLarge swings in revenue and profitability undermine predictability of returns from project pipelines and make long-term planning difficult. Volatility raises counterparty and lender concerns, increases required return thresholds, and complicates securing long-term contracts or financing necessary for steady growth.