PARIS (AFP) - Shares in the French oil major Total gained in early trading after the company revealed stronger-than-expected growth at its refining and chemical operations, pushing third quarter net profit above consensus forecasts.
The company also announced Wednesday an interim dividend payout of 2.40 euros (3.09 dollars) per share, better than a consensus expectation for 2.35 euros.
In late morning trades, Total shares were up 0.42 percent at 166.10 euros, while the CAC-40 index was 0.34 percent higher at 3,782.77 points.
Total's net profit climbed 38 percent to 2.37 billion euros in the third quarter, surpassing the 2.24-2.3 billion range of forecasts compiled by AFP's financial news subsidary AFX News, with core upstream profits rising in line with expectations to 3.41 billion euros.
Downstream refining operations posted profits of 752 million euros, more than double the 335 million seen in the same period a year earlier, and ahead of market estimates for 600-750 million, said analysts at Lehman Brothers.
At its chemicals unit, where Total has been pursuing restructuring plans throughout this year, profits tripled to 314 million euros from 102 million in the third quarter 2003.
Lehman Brothers said the market had expected 150-250 million euros for the division.
Alastair Syme, an analyst at Merrill Lynch, said that although the weak dollar could weigh on Total's share price, the results do not change his long-term investment thesis -- "a secure and consistent financial story (solid growth and leading returns), backed by a management team that looks set to continue to deliver on market expectations."
Total's reiteration of its capacity for stock buybacks, after spending 700 million euros on buybacks in the third quarter, were also supporting the shares, dealers said.
11/10/2004 - 11:55 GMT - AFP