WRAPUP 2-PetroChina's Q2 succumbs to refining squeeze

* PetroChina profit hit by soaring crude, fuel price cap

* H2 may be better after June fuel price rise

* Producers CNOOC and Woodside reap benefits from $140 crude (Adds executive and analyst comments, details)

By Judy Hua

HONG KONG, Aug 27 (Reuters) - PetroChina Co Ltd (0857.HK), Asia's top oil and gas producer, reported a sharp fall in quarterly earnings due to a squeeze on refining margins, but soaring crude prices fuelled a surge in profits at two other energy firms in the region.

Global crude oil prices CLc1 jumped by nearly half in January-June to top $140 a barrel, boosting the profitability of oil majors from Exxon Mobil Corp (XOM.N) to Royal Dutch Shell (RDSa.L) to record levels.

But state-run PetroChina and Sinopec Corp (0386.HK) (SNP.N) (600028.SS) have found themselves squeezed between skyrocketing crude prices and state-capped fuel prices, a massive burden for suppliers in the largest fuel market after the United States.

Chinese offshore producer CNOOC Ltd (CEO.N), which has no significant refining exposure, fared much better, beating forecasts with an 89 percent increase in first-half profit.

Underlying earnings at Woodside Petroleum Ltd (WPL.AX), Australia's No.2 oil and gas producer, rose 86 percent over the same period. [ID:nSYD244523]

Analysts say PetroChina (PTR.N) (601857.SS) faces a better second half after Beijing raised gasoline and diesel prices by 18 percent late in June -- provided crude does not ratchet up again.

"Their refining business could stop bleeding," said Kim Eng Securities analyst Larry Grace. "I don't see it getting any worse unless crude takes off again, and I don't think crude will."

The firm also took a hit on its production side, which increased oil and gas output 6.5 percent in the half. It paid out a whopping 47.8 billion yuan ($7 billion) in special levies on domestic crude oil sales -- or windfall taxes, which increase with rises in crude prices.

PetroChina, the largest of China's energy triumvirate, said its net profit fell 38 percent to 24.74 billion yuan in April-June versus 39.69 billion yuan a year earlier.

The result lagged a consensus forecast for 26.05 billion yuan from five analysts polled by Reuters.

Executives said it had won another government subsidy to compensate for refining losses in the second quarter of this year, but declined to specify the amount.

Chief Finance Officer Zhou Mingchun said the company had not received any government notice of a change to the subsidy policy in the third quarter. The firm posted nearly 60 billion yuan in losses from its refining and marketing division.