Repower Energy Development Corp. (REDC) is investing P12.5 million to establish Kitaotao Hydropower Corp. as it expands into hydropower development.

The company said Friday that it will subscribe to 12.5 million shares at P1 apiece from the new firm’s authorized capital stock of P50 million. 

Kitaotao Hydropower is set to become a wholly-owned subsidiary of REDC and will handle hydropower operations in line with the parent firm’s existing business.

The subscription, however, is subject to the Securities and Exchange Commission's approval of the Application for Incorporation of Kitaotao Hydropower.

Last week, REDC said it projects a stronger financial performance this year as newly completed and ramping projects contribute a full year of operations, following a massive jump in 2025 profits.

The company’s earnings surged 177 percent to about P330 million in 2025, driven by higher electricity generation and capacity expansion.

Total revenues rose to P775.8 million in 2025 from P533.4 million in 2024, supported by higher electricity sales and favorable feed-in-tariff adjustments.

REDC President Eric Roxas said the performance showed that the investments made post-public offering translated into real earnings growth and value to stakeholders.