Total, Statoil Q4 profits drop on weak gas prices

11. February. 2010

* Total Q4 adj net 2.081 bln eur, beating forecast
* Statoil Q4 adjusted EBIT 34.4 bln crowns, lagging forecast
* Total shares up 2.5 pct
* Statoil shares up 2 pct on dividend policy change

French oil company Total and Norwegian rival Statoil reported drops in fourth-quarter profit due to weak refining margins and lower gas prices, echoing a theme seen across the sector.

Total said on Thursday fourth-quarter net profit, excluding one-off items and unrealised gains on fuel inventories, fell 28 percent from a year earlier to 2.08 billion euros ($2.87 billion).

The result was slightly better than analysts had expected and Total affirmed its production growth plans, lifting the shares 2.7 percent to 42.04 euros at 1019 GMT to outperform a 1.6 percent rise in the DJ Stoxx European oil and gas sector index .SXEP.

Statoil's adjusted operating profit fell 21 percent to 34.4 billion Norwegian crowns ($5.84 billion), below a forecast for 35.1 billion and the company trimmed its 2012 production goal by 100,000 barrels per day, blaming weaker-than-expected gas demand growth due to the recession.

But Statoil's decision to change its dividend policy to offer more predictable returns lifted the shares 2.5 percent.

The largest western oil company by market value, Exxon Mobil, recently reported a 23 percent drop in fourth-quarter net income while the second-largest U.S. oil company, Chevron, posted a 37 percent drop.
Royal Dutch Shell Plc saw net profits drop 75 percent in the quarter, after refining margins collapsed.
[Reuters]