Paris, Nov. 4 (Reuters): Record oil prices and strong refining margins boosted underlying third-quarter profits at French energy giant Total by a third, roughly in line with market expectations, and raised its dividend by 25 per cent.

Total said on Friday its adjusted net profit, which excludes non-recurring items and gains from rises in the value of fuel inventories, rose 32 per cent to 3.13 billion euros. A Reuters poll of 10 analysts gave an average forecast of 3.15 billion euros.

Analysts focus on adjusted or “clean” net profit, seeing it as the best measure of the underlying health of an oil firm.

“We have reported very strong results for the quarter. This is mainly due to the very strong oil market environment,” chief financial officer Robert Castaigne told reporters on a conference call.

Investors noted that the sharp profit rise came despite refinery strikes in France and hurricane-related production and refining stoppages in the United States.

“They’re a decent set of numbers. High prices have counteracted a few negative one-off's,” said Bertie Thomson, fund manager at Aberdeen Asset Management, whose portfolio includes Total shares.

The firm’s result follows an average 30 per cent increase in third-quarter profits among rival oil majors including BP Plc and Chevron Corp, which were also boosted by oil prices that hit a new record above $70 during the quarter.

However, compared with its rivals, Total was helped by its relatively low exposure to hurricane-afflicted Gulf of Mexico production.

Total's shares traded down slightly at 216 euros at 0900 GMT, compared to a 0.47 rise in the DJ Stoxx European oil and gas sector index.