Vienna - The Austrian oil and gas group OMV said Wednesday that profits and operating earnings increased significantly, as rising oil prices offset the burden of the weaker US dollar.

Net profit after minorities was up 34 per cent to 445.7 million euros (690 million dollars), compared to the same period last year. Minority interests were 120 million euros.

The group's operating profits were 55 per cent above those of the first quarter in 2007, with the high oil price more than offsetting the weaker dollar and lower refining margins.

Earings before interest and taxes (EBIT) were at 795 million euros, with Romania's Petrom, the group's most important subsidiary, contributing 277 million euros, an increase of 104 per cent.

Clean EBIT increased by 65 per cent to 792 million euros. OMV's sales revenue for the first three months of 2008 increased by 30 per cent to 5.95 billion euros.

First results of restructuring efforts at Petrom were starting to feed through, CEO Wolfgang Ruttenstorfer said.

For 2008, OMV said it expected main market drivers like crude oil prices, refining margins and the dollar-euro exchange rate to remain highly volatile but expected to deliver robust earnings.

In the gas and power segment progress was made on the European Nabucco pipeline project, Ruttenstorfer said, with Germany's RWE joining as a sixth partner.

"While pursuing with Petrom's restructuring, we will continue to implement our 2010 growth strategy and strengthen our position in CEE (Central and Eastern Europe)," Ruttenstorfer said.

OMV has not given up its merger plans with Hungarian competitor MOL, despite fierce resistance from MOL's management and the Hungarian government. (dpa)