Significant Cost Reduction and Strategic Focus
Greening, a prominent player in the energy sector, has successfully reduced its operational costs by more than 50% compared to the previous year. This remarkable achievement is primarily attributed to a comprehensive restructuring strategy which includes the withdrawal from France and Morocco, alongside plans to cease operations in Germany before the end of 2026. This strategic pivot allows Greening to concentrate its resources on markets with the highest potential, specifically Spain, Italy, the United States, and Mexico, as part of its 2030 strategic plan.
The restructuring efforts encompass a thorough simplification of the corporate and organizational structure, which includes workforce reductions, a review of contracts and external services, as well as implementing stringent cost containment measures. Felipe García, Greening's Chief Financial Officer, highlighted that this has led to a drastic shift in the company’s expenditure structure, reducing costs from approximately €32 million to around €15 million. He noted that the company has had to make several difficult decisions regarding cost reductions across all lines of its business. García expressed confidence that Greening has stabilized its cost levels in relation to revenue and is now poised to advance its business plan, as committed to its investors during a recent capital increase.
The international presence review has led to the sale of projects, the abandonment of developments lacking continuity prospects, and workforce reductions in the countries from which the company is withdrawing. In Morocco, Greening was involved in water and distributed generation projects which necessitated a high labor input due to the manual nature of the work. In France, the company has either sold or abandoned the development of parks where future viability appeared uncertain.
Future Plans and Growth Strategy
Looking ahead, Germany is the next focal point for Greening's restructuring efforts, where it maintains a development park and another under construction. Although the exit from Germany has not yet been finalized, the intention is to complete this process before the year concludes. García attributes this decision to high labor and logistics costs that diminish profitability, as well as the financial requirements of these projects. He explained that development in Germany demands a solid balance sheet and capital willing to endure longer recovery periods than Greening aims for at this stage. "We require a business model with shorter maturation and turnover periods," García emphasized.
Additionally, Greening is exploring potential acquisitions as a secondary avenue to stimulate its growth. Following successful integrations of EiDF and Energy Solar Tech in 2026, the company is actively seeking complementary businesses that can deliver results from the outset without jeopardizing the financial equilibrium it has achieved. Pablo Otín, Greening's CEO, stressed the importance of ensuring that any new acquisitions generate value for the company. He cautioned that any new purchases must fit seamlessly into the existing business framework and positively impact the balance sheet, emphasizing the need for caution to avoid unnecessary strain.
Otín identified opportunities for GreenSol, Greening's platform that combines engineering and execution capabilities, including expertise in substations and electrical lines. He believes this area can experience significant growth by 2027. Furthermore, he noted that Lidera Energía, which focuses on energy marketing and solutions, is in an optimal position, while expanding the biogas platform may present more challenges.
In the realm of recycling and valorization of photovoltaic panels, a nascent business called Relive, Otín sees potential for growth through acquisitions. However, he clarified that no operations in this regard are currently being analyzed, and any decisions would need to be coordinated with Greening's partner in the business. "Our goal is to build a company with a cost structure aligned with our new business model, capable of growth, generating cash flow, and allocating capital in a disciplined manner," Otín concluded.
As reported by eleconomista.es.
