Poor refining margins drive profit down at Total

PARIS (AP) French oil company Total said Thursday that net income fell 10 percent in the July-to-September period, partially due to poor refining margins amid a sluggish European economy.

The company said that net profit was 2.8 billion euros ($3.9 billion) in the quarter, the first in its fiscal year. Revenue was 46.7 billion euros, a drop of 6 percent. Still, both figures were above consensus expectations of analysts surveyed by FactSet.

While Brent crude oil prices were fairly stable in the quarter, refining margins the profit from converting oil into useable fuel plummeted 79 percent, as a poor economy cut into energy demands.

The company said its profit was also hit by higher exploration costs as part of a more active drilling program.

Investors were disappointed. In early trading on the Paris bourse, Total's share dropped 1 percent to 44.78 euros.

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