Low oil prices hit Total profits

Total says its oil production is back on track

Total has blamed lower oil prices and tight refining margins for a 54% drop in third-quarter net profits.

In the three months to September, the French oil giant's profits reached 1.9bn euros ($2.8bn; £1.7bn), compared with 4.1bn euros a year earlier.

Total's third-quarter output rose 0.5% to 2.24m barrels of oil a day compared with the same period last year.

However, Total now expects oil production to fall this year, revising its previous prediction of an increase.

Pipeline projects

Total chief executive Christophe de Margerie remained upbeat, saying the company's oil production was "back on track".

He also pointed out that Total's spending was "in line" with a target of $18bn for 2009.

Total has started four of five developments planned for this year; the Akpo oilfield off Nigeria, liquefied natural gas plants in Qatar, the Tahiti field in the Gulf of Mexico, and Angola's Tombua-Landana field.

Total's share in these projects will add about 230,000 barrels of oil equivalent a day in output in 2010, according to the company's chief financial officer Patrick de la Chevardiere.

Demand for oil products has fallen as consumers have cut spending on travel and goods, leading to lower profits for refiners, reduced plant operating rates and temporary closures.