French oil group Total reported the highest annual net profit in French history on Thursday of 13.9 billion euros (18.0 billion dollars) for 2008 due to record oil prices during the year.

Fourth-quarter net profit, adjusted to exclude inventory changes and other one-time items, dropped to 2.87 billion euros from 3.11 billion euros in the same period a year earlier.

Changes in inventory valuations to reflect the fall in oil prices meant the group slumped to a net loss without adjustments of 794 million euros for the final quarter from a net profit of 3.6 billion euros last year, Total said.

Sales fell 10 percent to 38.71 billion euros from 43.19 billion euros.

Shares in Total have declined by around 17 percent over the past six months, as the price of oil has plummeted and sentiment has turned on the stock market due to the financial crisis.

Its shares closed Wednesday in Paris down 0.8 percent at 40.09 euros.

Oil prices have fallen from the historic high of nearly 150 dollars a barrel in mid-2008 to around 40 dollars currently.