PARIS: France's Total SA yesterday reported continued big profit gains in the second quarter – before record oil prices began to falter – with net income up 38.7 per cent to e4.73 billion.

The world's fourth-largest oil and gas company said the upstream segment drove the new highs, bringing the quarterly result up from e3.41 billion in the same period a year ago. Rival oil majors all reported big second-quarter gains on high crude prices.

The earnings report covered the period ending 30 June, before oil prices started coming down from their extreme heights. Crude has fallen in recent weeks from a record high of $147.27 on 11 July, in part on expectations that the spike in prices over the last year has begun to dampen US demand for gasoline. Light, sweet crude for September delivery fell to $123.23 a barrel in Singapore trading yesterday.

"In the second quarter, demand for oil remained robust, driven by continued growth in Asia and the Middle East, and despite signs of a slowdown in the Atlantic Basin," Total Chief Executive Christophe de Margerie said in a statement.

Total, France's biggest company by market value, said net profit for the first half of the year was up 29 per cent to e8.3 billion from e6.4 billion a year before.

Sales in the second quarter were up 23 per cent to e48.2 billion from e39 billion a year ago.

Total also reported production growth of 1.3 per cent in the second quarter, noting growth in an offshore block in Angola, the deep offshore Moho Bilondo field in Congo, the Dolphin gas project in Qatar and the startup of the Jura gas and condensate field in the North Sea.

High oil prices have fattened Total's competitors, too. Exxon Mobil reported the biggest operating profit in US corporate history on Thursday: The world's largest publicly traded oil company turned a profit of $11.7 billion for the second quarter, up 14 per cent from a year ago. Royal Dutch Shell PLC said on Thursday that second-quarter net profits rose 33 per cent to a record $11.6 billion. Norway's state-controlled StatoilHydro ASA reported a 37 per cent rise in second-quarter net profits yesterday.

Total shares were down 1.1 per cent at e48.82 in Paris morning trading yesterday.