CNPC (Hong Kong), the listed arm of mainland oil giant China National Petroleum Corp, saw net profit more than double to $134.21 million last year. The result was bolstered by contributions from a new project, the Leng Jiapu oil field, which more than offset a drop in the price of crude oil. The company earned $63.10 million in 1997. It reported a 140.34 per cent jump in turnover to $776.85 million and an 111.34 per cent increase in operating profit to $180.76 million. Diluted earnings per share were 2.71 cents, up from 1.36 cents earlier. The company did not propose any dividend for the year. Company secretary Lau Hak-woon said the operation, production and business progress of the Xinjiang Karamay oil field and Leng Jiapu oil field were in line with targets. However, revenue from the two projects had been affected by fluctuations in crude oil prices since Beijing deregulated the price of domestic crude on June 1 to bring it in line with international norms. Under a production sharing contract, the company took 70 per cent - or 684,865 tonnes of output - from the Leng Jiapu project, which translated into a pretax profit of $137.03 million. The contract - signed with parent CNPC - came into effect on March 1, last year. The company derived a pretax profit of $36.27 million from its share of 54 per cent, or 378,128 tonnes, of crude oil production from Xinjiang Karamay. Mr Lau said CNPC (Hong Kong) expected profit to be more stable this year given the recent recovery in international oil prices.