2nd UPDATE: Total Adjusted Net Profit Rises 35% On Higher Prices

PARIS (Dow Jones) --French oil major Total SA (TOT) Friday posted a 35% increase in adjusted net profit in the first quarter, boosted by higher commodity prices in spite of lower petroleum output due to the ongoing unrest in Libya.

In the first quarter this year, Total's net adjusted profit grew to EUR3.1 billion, from EUR2.3 billion a year earlier, matching expectations. Seven analysts polled by Dow Jones Newswires saw an adjusted net profit at EUR3.06 billion. The adjusted net profit excludes special items, petroleum inventory effects and Total's equity share of adjustments related to Sanofi-Aventis (SNY).

The results followed similar reports Thursday by peers Exxon Mobil Corp. (XOM) and Royal Dutch Shell PLC (RDSB.LN) that showed how large oil companies have been buoyed by stronger commodity prices in the wake of the economic recovery and political instability in the petroleum-rich Middle East/North Africa region.

"Growing geopolitical tensions and the aftermath of the earthquake in Japan will shift the balance of the global energy markets," said Chief Executive Christophe de Margerie. "In the face of these new challenges, Total confirms its strategy of investing to increase its production to better respond to changes in energy demand and in the energy mix."

Total announced Thursday night a $1.37 billion proposal to take a 60% in SunPower Corp. (SPWRA, SPWRB), a U.S. solar manufacturer, in an effort to boost its renewable energy portfolio. The news boosted not just SunPower, which surged by some 36% Friday morning, but several European solar companies. Norway's Renewable Energy Corp ASA (REC.OS) was up nearly 8&, while Germany's Q-Cells SE (QCE.XE), jumped nearly 5%.

A Paris trader said Total's earnings were "impressive" but gave a lukewarm appraisal of the SunPower deal, which values the California company at $2.3 billion. "The price seems high for solar power," said the trader, who insisted on anonymity.

Total Chief Financial Officer Patrick de la Chevardiere told analysts that was comfortable with the price Total paid for SunPower.

After trading in the red for most of the morning, Total shares were up .15, or .35% to EUR43.16 at 1458GMT, while the CAC-40 benchmark index was up .04%.

Total's hydrocarbon output over the quarter dropped to 2.371 million barrels of oil equivalent a day from 2.427 million boe/d a year earlier, due to the halt of production in Libya on the back of the civil war there. Analysts expected production of 2.36 million barrels per day.

De la Chevardiere said that the 55,000b/d the company normally gets from Libya has been stopped completely and that it would be off-line for some time.

De la Chevardiere said there is room to raise the company's quarterly dividend, although management must first monitor oil price developments further to see where and when they stabilize. The company paid an unchanged rate of EUR0.57 for the first quarter.

-By Geraldine Amiel, Dow Jones Newswires; [phone]; [e-mail];