VIENNA, August 6, 2008 (AFP) - Austrian oil and gas giant OMV reported on Wednesday a record net profit of 1.13 billion euros (1.748 billion dollars) in the first half of 2008, up 52 percent from the equivalent figure last year as oil prices remained high despite a weak dollar.

Most analysts had forecast a 36-percent rise in profit.

In the first six months of 2007, the Austrian group had posted a net income after minorities of 743 million euros.

Meanwhile, underlying profit in the last six m onths, as measured by earnings before interest and tax (EBIT), was up 63 percent to 1.746 billion euros. Sales totalled 12.919 billion euros.

OMV shares were showing a gain of 6.99 percent at 45.28 euros on the Vienna stock exchange in mid morning trading.

'We are pleased with the consistent progress that OMV continues to make, posting stronger six month results in all segments compared to the same period last year,' OMV CEO Wolfgang Ruttenstorfer said in a statement.

'In particular, the upstream environment continues to be favourable, with Petrom once again contributing significantly to Group results,' he added.

Romanian group Petrom, in which OMV holds a 51-percent stake, increased its contribution to underlying profit by 109 percent from the same period last year, to 361 million euros.

Ruttenstorfer predicted that oil prices would remain high in the second half of the year, although they would drop from record levels seen in the first six months of 2008.

'However, new upstream production, together with ongoing efficiency initiatives at Petrom should help offset these developments,' he said, noting new developments in Austria but also Kazakhstan, New Zealand and Yemen.

OMV announced on Wednesday that it was withdrawing a controversial takeover bid for its Hungarian rival MOL, after EU officials objected to the effects of the resulting group on competition in central Europe.