(RTTNews) - French oil major Total SA (TOT: News ) said Wednesday that profit for the third quarter plunged from the prior-year period, as spot gas prices and refining margins reached very low levels, reflecting sharp decline in demand and the resulting oversupply.

In the third quarter, Brent price averaged 68.1 $/b, down 41% from the year-ago period. TRCV European refining margin indicator in the quarter fell to 6.6 $/t on average, a decrease of 85% compared to the third quarter last year.

The company, which also produces fertilizers and petrochemicals, reported net earnings for the third quarter of EUR 1.98 billion or EUR 0.86 per share compared with EUR 3.15 billion or EUR 1.36 per share in the prior-year quarter.

On an adjusted basis, net earnings plunged to EUR 1.87 billion or EUR 0.84 per share from EUR 4.07 billion or EUR 1.81 per share last year.

Adjusted results exclude an after-tax inventory effect, special items, and the company's equity share of adjustments and selected items related to Sanofi-Aventis. Total said its share of adjustments and selected items in connection with Sanofi-Aventis had a negative impact of EUR 70 million on the quarter's net income.

On an average, three analysts polled by Thomson Reuters expected the company to earn US$1.19 per share for the quarter. Analysts' estimates typically exclude special items.
Euro-dollar exchange rate averaged 1.43 $/€ in the quarter compared to 1.51 $/€ in the comparable period prior year.

The company's sales for the quarter dropped to EUR 33.63 billion from EUR 48.85 billion in the third quarter of fiscal 2008. Total SA operates through three segments: Upstream, downstream, and chemicals segments.

Adjusted net operating income from upstream segment dropped 48% to EUR 1.50 billion from EUR 2.90 billion in the prior year. Hydrocarbon production for the quarter was 2,243 thousand barrels of oil equivalent per day, up 0.5% from the previous year. The company said its production is back on track in the upstream segment, and that the division is continuing to actively implement cost reduction programs targeting its fixed costs and projected cost of its investments.

Adjusted net operating income from downstream segment plunged to EUR 146 million from EUR 901 million in the 2008-year period. Total said that in the downstream segment, refining faces a very difficult environment, and that it is working to reduce costs and restore the profitability of the activity.

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