Core Viewpoint - Statkraft is applying for a license to upgrade the Nore hydropower plants with a budget of 4 billion NOK to enhance electricity production and stabilize prices in Norway [1][2]. Company Overview - Statkraft is a leading international hydropower company and Europe's largest generator of renewable energy, with operations in over 20 countries and around 7,000 employees [14]. Project Details - The Nore hydropower plants consist of Nore I, operational since 1928 with a capacity of 212 MW and annual production of 1150 GWh, and Nore II, operational since 1946 with a capacity of 60 MW and over 300 GWh annual production [10]. - The upgrade aims to nearly double the capacity from 274 MW to 500 MW and increase annual production from approximately 200 GWh to about 1700 GWh under the preferred alternative [6]. - An alternative plan would increase the combined capacity by 65 MW and production by around 150 GWh [6]. Future Plans - Statkraft plans to build a next-generation hydropower system and initiate five major upgrades by 2030, with the Nore plants upgrade being a significant step [2][8]. - The company aims to increase its installed capacity in Norway by over 20 percent, providing an additional 1500 to 2500 MW of capacity through various upgrades [8]. Environmental and Economic Considerations - Upgrading existing hydropower plants is seen as a way to enhance capacity and energy production while considering environmental impacts [3][9]. - The company acknowledges that such upgrades require substantial investments and are often only marginally profitable, necessitating careful assessment of various factors [9]. Licensing Process - The license application will be processed by the Norwegian Water Resources and Energy Directorate (NVE), followed by a hearing process, with the Ministry of Energy making the final decision [13].

Core Insights - Velcan Holdings reported strong financial results for 2024, with a significant increase in net income and stable turnover from the Rodeio Bonito plant despite operational challenges [2][6][19]. Financial Performance - Revenues for 2024 reached EUR 3.0 million, a 2% increase from EUR 2.9 million in 2023 [2]. - Net income surged to EUR 11.2 million, up 2005% from EUR 0.5 million in 2023 [2][6]. - EBITDA for the year was negative at EUR -5.6 million, compared to EUR 1.8 million in 2023 [2][36]. - Cash and financial assets increased by 8% to EUR 135 million from EUR 125 million in 2023 [2]. Portfolio Allocation - As of December 31, 2024, the portfolio consisted of 43% cash and short-term Western sovereign bonds, 22% in gold mining and silver-linked securities, and 25% in other equity-long positions [3][9]. - The financial portfolio's value increased significantly, driven by investments in precious metals and Japanese stocks [2][4]. Rodeio Bonito Plant Operations - The Rodeio Bonito plant generated 52,190 MWh in 2024, an increase from 50,190 MWh in 2023, despite operational disruptions due to turbine damage [5][20]. - Turnover from electricity sales was EUR 3.0 million, up 2% in Euros and 10% in BRL compared to 2023 [5][23]. - The plant's EBITDA decreased by 22% in BRL terms due to lower turnover and increased expenses related to turbine repairs [24]. Regulatory Changes - A new regulation proposal by ANEEL may adjust guaranteed energy for power plants based on actual availability, potentially impacting profitability for the Rodeio Bonito plant [25][26]. Investment Strategy - The company has maintained a diversified investment strategy, focusing on safe-haven assets amid geopolitical tensions and inflationary pressures [2][8]. - Significant investments were made in the Japanese hotel REIT industry and the Filipino markets, with exposure exceeding EUR 2 million in various sectors [11][12]. Shareholder Actions - Velcan Holdings continued its share buyback program in 2024, purchasing a total of 92,892 shares for EUR 1.29 million [30].