Total Q3 Profit Falls, But Better Than Expected

GREG KELLER

PARIS (AP) — Total SA, Europe's third-largest oil company, reported Wednesday that net income fell 37 percent in the third quarter due to a sharp fall in energy prices, but were still somewhat better than expected.

Total posted third quarter net profit of euro1.9 billion ($2.8 billion), down from the year earlier figure of euro3.1 billion but ahead of the euro1.8 billion that analysts forecast.

On an adjusted basis, a closely watched measure of profitability that excludes inventory gains and losses and tax charges and credits, the French oil major's profit fell by an even larger 54 percent in the quarter.

Total's earnings were on par with the steep drop in third quarter profits already reported by larger rivals Exxon Mobil Corp., Royal Dutch Shell PLC and BP PLC. The industry is struggling to adapt to lower demand and the volatility in oil prices that has seen the price of a barrel spike to nearly $150 last July, then stage a retreat back to around $30 early this year.

"We have been suprised by the speed of the recovery, but we would not be surprised by continued volatility," Total Chief Financial Officer Patrick de la Chevardiere said during a conference call with analysts.