Vienna - Austrian oil and gas group OMV reported an increase of more than 60 per cent in profits and operating earnings for the second quarter of 2008 on Wednesday, as rising oil prices offset the effects of a weak dollar.

Net profit after minority interests rose to 684 million euros (1.061 billion dollars) between April and June 2008, 66 per cent above the 411 million euros it made in the same period last year. Minorities accounted for 98 million euros.

OMV reported sales of 6.965 billion euros, up 52 per cent from the first quarter of 2007.

Higher oil prices offset the impact of the weaker US dollar and higher refining costs, resulting in a 69-per-cent rise in earnings before interest and taxes (EBIT) of 951 million euros in the first quarter, compared with 562 million dollars last year.

Petrom in Romania, OMV's most important subsidiary, contributed 235 million euros to EBIT.

"Looking forward, we expect oil prices to remain high," OMV CEO Wolfgang Ruttensdorfer said, "though declining from the record levels seen in the first half year, whilst our indicator refining margins should continue to be impacted by the high cost of crude."

OMV announced on Wednesday that it withdrew its bid to take over Hungarian oil and gas group MOL, after the European Commission signalled its opposition to the deal.

MOL's management was also trying to fend off the takeover.

In the second half of 2008, new production developments in New Zealand, Kazakhstan, Austria, Libya and Yemen would come on stream, the company said.

In Romania, OMV plans to invest 3 billion euros annually on average until 2010 in order to modernize Petrom's operations, OMV said. (dpa)