ENERGY company Asia Power Corp saw a near doubling of net profit to $19.9 million for the year ended Dec 31, 2006 from $10.1 million the year before. This came on the back of a 23.6 per cent increase in revenue to $121.3 million, the group reported yesterday.

The mainboard-listed company proposed a final dividend of 0.9 cents and a special dividend of 0.2 cents per ordinary share. Asia Power's cash and cash equivalents at end-2006 were $24.2 million, up from $20.9 million. Revenue growth was largely attributed to the consolidation of the financial results of Sichuan Anning River Energy Development, which became a subsidiary of Asia Power at the end of FY2005.

Asia Power will continue to concentrate on hydro-electricity generating plants, which are its main engine of growth. In the second half of FY2006, the group invested in hydropower plants in Yunnan and Sichuan.

Asia Power said that China is expected to continue its strong growth, which will drive up electricity consumption - a plus for the group.

The group expects to see sustainable growth from its focus on renewable energy, with its hydropower plants in Neijiang and Anning River having 'significantly higher' gross profit margins compared to its coal-fired plant in Xinbao.

Asia Power's gross profit margin for the year was 24 per cent, up from 12.2 per cent the year before. Earnings per share was 5.62 cents, up from 2.90 cents a year ago.

The company's shares closed 1.5 cents up at 37.5 cents yesterday.