Sable Offshore Corp. (SOC) saw its stock price plummet by 5.81% during intraday trading on Tuesday, reflecting significant investor concerns about the company's financial health and legal risks.
The sharp decline comes as the company reported a massive US$410.2 million net loss for full year 2025 tied to restart-related costs, raising questions about its path to profitability. Additionally, legal uncertainty surrounding the company's Las Flores offshore California assets has created further investor apprehension about operational risks.
Despite FourWorld Capital Management recently taking a large new stake in the company, Sable Offshore remains unprofitable with negative return on equity and relies entirely on external borrowing, factors that likely contributed to the stock's downward movement during the trading session.