According to the Wise Finance APP, due to the decline in petroleum refining profit margins and oil prices, Total (TTE.US) saw a larger-than-expected drop in third-quarter profits, hitting a three-year low.

After experiencing unusually high oil and natural gas prices in recent years, as the weakening demand in regions such as Europe has softened due to economic growth, this French energy giant and its counterparts are gradually normalizing profits. While continuing to reward investors with huge expenditures, this has put pressure on the balance sheets of these companies.

Total stated that the company's adjusted net income for the third quarter was $4.07 billion, far below the $6.45 billion in the same period last year, with analysts expecting $4.27 billion. Adjusted EBITDA fell 23.6% year-on-year to $10 billion.

In addition to a 83% year-on-year drop in quarterly profits for the refining and petrochemical sectors, Total's comprehensive liquefied natural gas division also saw a 21% decrease compared to the same period last year. Profits from integrated electrical businesses, including renewable energy, also dropped by 4% year-on-year.

CEO Patrick Pouyanne stated in a statement that these results reflect the sharp decline in petroleum refining margins in Europe and other parts of the world. He also mentioned that the low volatility in the natural gas market hindered trading profits.

However, Total still plans to repurchase $2 billion worth of stocks in the fourth quarter and has decided to pay an interim dividend of €0.79 per share for the third time this year. Earlier this month, the company committed to maintaining its quarterly repurchase pace while increasing oil and gas production under 'reasonable market conditions'. European competitor Shell also announced on Thursday that it will continue its repurchase momentum.

As of the end of the third quarter, Total's net debt increased from $16.7 billion in the same period last year to $17.6 billion.

Although the petroleum refining profit margin was weak during this period – the so-called European Refining Margin (ERM) averaging $15 per ton, Total expects it to rebound to nearly $25 per ton afterwards. The company expects that in the last three months of this year, its refinery utilization rate will remain above 85%.

Hydrocarbon production decreased by 1% compared to the second quarter, to 2.41 million barrels of oil equivalent per day, due to the shutdown of the Australia Ichthys LNG plant and disruptions in Libya offsetting the production boost in Brazil. Total stated that oil & gas production in the fourth quarter may slightly increase.

Total also recorded a $1.1 billion impairment due to the August bankruptcy filing of its USA subsidiary SunPower and its withdrawal from several offshore blocks in South Africa.