Total down 54 percent on weaker oil

Wed 04 Nov, 2009 08:49

LONDON (Reuters) - French oil major Total SA said third quarter net profits dropped 54 percent as lower oil prices and tight refining margins weighed.

Total said in a statement on Wednesday that its adjusted net income, which strips out one-off items and unrealised gains related to changes in the value of fuel inventories, was 1.87 billion euros (1.67 billion pounds), in line with analysts' average forecast of 1.84 billion according to Thomson Reuters I/B/E/S.

Total said production of oil and gas rose 0.5 percent in the quarter compared to the same period in 2008, to average 2.243 million barrels of oil equivalent per day (boepd).

A recovery in oil prices since the second quarter allowed the company to reduce gearing to 20.8 percent from 24.7 percent.

Chief Executive Christophe de Margerie said Europe's largest refiner by capacity was countering a tough environment in that sector by cutting costs.