CNPC (Hong Kong) plans to raise about $154.6 million by issuing shares to its parent to fund part of the acquisition cost of the Leng Jiapu oilfield in the mainland. The red chip said the oilfield it bought from its ultimate parent - China National Petroleum - was the main engine of growth in the first half of this year. Net profit in the period jumped a year-on-year 178 per cent to $84.3 million. Executive chairman, Zhang Ruchun, however, warned of 'a direct impact on the results of the second half', following Beijing's move in June to float domestic crude oil prices along with international ones. The company would try to reduce operating costs, enhance its asset portfolio and improve profitability 'through aggressive yet steady expansion' to minimise the impact, he said. The company's turnover in the half surged 148 per cent from a year earlier to $355.8 million. Operating profit rose 175 per cent to $124.0 million. Mr Zhang said the company earned $82.4 million of pretax profit from the Leng Jiapu oilfield, as its share of 70 per cent of oil production for the four months from March. This would mean there was a slight drop in pretax profit from its existing businesses. Mr Zhang said the Xinjiang oilfield project contributed a pretax profit of $37.8 million. The company has a 54 per cent interest in the project which produced 296,920 tonnes of crude oil. In the half, the company poured 100 million yuan (about HK$93.06 million) in developing the Leng Jiapu oilfield and US$11 million into bolstering the project in Xinjiang. Earnings per share rose 159 per cent from a year ago to 1.74 cents, and like last year, the company is not paying an interim dividend. The consensus market forecast is for an annualised 185 per cent increase in net profit to $180.5 million this year. Secretary Lau Hak-woon said its immediate controlling shareholder - Sun World - would subscribe 143.1 million shares at $1.08 each. The subscription price represented a 35 per cent premium to yesterday's closing price of 80 cents. Mr Lau said the company could demand that Sun World further subscribe to shares worth up to $231.9 million by December under an agreement reached in February. The company's decision to turn to its parent for capital was believed to be the result of difficulties in raising funds from the market.