(Yicai) Aug. 27 -- PetroChina’s shares rose after the country’s largest oil and natural gas producer reported a record-high profit of CNY88.6 billion (USD12.4 billion) for the first half due to higher sales and prices across products and despite a drop in refining income.

PetroChina [SHA: 601857] closed 3 percent up at CNY9.32 (USD1.31) a share in Shanghai today, while the company’s Hong Kong-listed stock [HKG: 0857] jumped 4.1 percent to end at HKD7.15 (92 US cents).

Net profit rose 4 percent in the six months ended June 30 from a year earlier, the Beijing-based company announced yesterday. Revenue climbed 5 percent to CNY1.55 trillion (USD217.5 billion).

The listed arm of state-owned China National Petroleum Corporation attributed the gains mainly to surging oil and polyethylene prices and higher natural gas and polyethylene sales.

Oil prices rose in the first half chiefly because global economic growth buoyed the recovery of demand and the Organization of Petroleum Exporting Countries further cut output, leading to higher international oil prices, PetroChina noted.

Average spot prices for Brent and West Texas Intermediate crude oil jumped 5.5 percent and 5.6 percent to USD84.06 and USD78.95 per barrel, respectively, in the period.

PetroChina sold around 147.2 billion cubic meters of natural gas in the first half, up 13 percent from the same period last year, with domestic sales accounting for 114.9 cubic meters or 78 percent of the total.

But revenue from the firm’s refining, chemicals, and new materials business slumped 26 percent to CNY13.6 billion, mainly as a result of a narrower gross profit margin at it refining segment.

PetroChina expects second-half expenses to exceed CNY179 billion (USD25 billion), over 80 percent of which will be invested in the oil, gas, and new energy segments, mainly to push forward oil and gas exploration in China and overseas.

Editor: Futura Costaglione