Aug. 27 (Bloomberg) -- PetroChina Co., the world's second- biggest company by market value, said first-half profit fell 35 percent as refining losses and taxes eroded gains from record crude oil prices.

Net income dropped to 53.6 billion yuan ($7.8 billion), or 0.29 yuan a share, from 81.83 billion yuan, or 0.46 yuan a share a year earlier, the company said in a statement today. That's in line with the median estimate of 54 billion yuan in a Bloomberg News survey of seven analysts.

PetroChina, overtaken by Exxon Mobil Corp. as the world's most valuable company in the first half, was hurt by government fuel-price caps that undermined the company's ability to profit from a 46 percent jump in oil prices. China's biggest oil producer also paid more taxes as crude sales jumped.

To contact the reporter on this story: Wang Ying in Hong Kong at wang30@bloomberg.net; Winnie Zhu in Hong Kong at wzhu4@bloomberg.net

Last Updated: August 27, 2008 04:45 EDT