France's Total Q2 profit up 43 percent

PARIS (AP) - French oil company Total SA said Friday its second-quarter profit jumped 43 percent thanks to rising production and improving refinery activity after a rough 2009, and said it is reviewing drilling and accident policies after the BP spill.

Total reported euro3.1 billion ($4.05 billion) in profits for the quarter, compared to euro2.17 billion in the same period last year, when earnings were hit by slumping energy demand and prices during the global recession. The profit increase was bigger than anticipated - the consensus in the markets was for a more modest rise to around euro2.7 billion.

Bar the exceptional circumstances surrounding BP PLC, most major oil companies worldwide are recovering strongly from the recession - Total's second quarter revenue rose 31 percent to euro41.3 billion, from euro31.4 billion a year ago.

Total's chief executive Christophe de Margerie said the company benefited from a favorable economic environment for the first half of this year, including higher oil prices and a rise in refinery margins, and that he was "confident" about the outlook for the rest of 2010.

De Margerie said Europe's third-largest oil company had "one of the best" midyear performances in the sector, with profits up 28 percent to euro5.7 billion from euro4.4 billion a year ago.

Analysts say Total has no exposure in the Gulf of Mexico and is therefore seen as little affected by BP's oil spill troubles. However, De Margerie said the spill "reminds us that security and the environment should rest absolute priorities" and said Total is reviewing its accident and drilling procedures as a result of the spill.

Total reported a 8 percent rise in petroleum production for the second quarter.

Total is France's largest company by market capitalization and a bellwether for the country's corporate earnings season.

Oil demand has been rising amid signs that the worst of the economic crisis is over. On Thursday, Exxon Mobil Corp. said its net income nearly doubled to $7.56 billion in the second quarter, and Royal Dutch Shell Group posted a 15 percent gain in net income.