PARIS (Reuters) - French oil major TotalEnergies reported a 15% drop in fourth-quarter earnings on Wednesday, closing out a year marked by low oil prices and weak fuel demand that were partially offset by higher electricity sales and liquefied natural gas trading.

Adjusted net income for the final three months of 2024 was $4.4 billion, down from $5.2 billion a year previously but slightly higher than the third quarter's $4.1 billion. The results beat expectations for $4.2 billion, according to a Visible Alpha consensus of six analysts.

Western oil majors are facing reduced economic activity and competition from new African and Asian refineries, which caused profit margins for converting crude oil into fuel products to collapse last year. The trend is expected to continue in 2025.

Total's European refining margin for the fourth quarter was $25.90 per metric ton - half the $50.10 realized in late 2023 - while crude oil prices were nearly $10 per barrel lower than the previous year.

Last week Shell, Chevron and ExxonMobil all reported fourth-quarter earnings hard hit by the downturn in refining margins.

Total was able to end the year on a higher note thanks to its integrated LNG division, where traders captured higher profits due to market volatility and boosted earnings by 35% to $1.4 billion.

The company said it expects higher gas prices, upstream production and power sales in early 2025.

Total announced a 7% increase in the 2024 dividend to 3.22 euros per share, and for 2025 confirmed share buybacks of $2 billion per quarter.