Profit skids on oil

PetroChina Co, the country's largest oil company, said first-half profit fell 34.5 percent as refining losses and taxes cut gains from record crude oil prices.

The company's net profit dropped to 53.62 billion yuan, or 0.29 yuan a share under international financial reporting standards, said a company statement yesterday. In the first half of 2007 PetroChina's net profit was 81.83 billion yuan, or 0.46 yuan a share.

"PetroChina's financial performance was adversely affected by factors including the increase of a special levy on domestic oil production, refined product prices below the international level and the hike in raw materials cost," said Zhou Jiping, vice-chairman and president of PetroChina.