* Total says Q4 adj net profit fell 19 pct on year ago
* Output at 2.299 mln boed in 2013, down 0.04 pct on yearago
* Organic capex to be cut to $26 bln in 2014 vs $28 bln in2013
* Group raises Q4 dividend by 3.4 pct to 0.61 euros a share
By Michel Rose and Benjamin Mallet
PARIS, Feb 12 (Reuters) - French oil firm Total raised its dividend on Wednesday and confirmed it would cutcapital spending even though output was stalling, falling intoline with industry peers by reducing investment to try to boostshareholder returns.
Fourth-quarter adjusted net profit fell 19 percent to 2.47billion euros ($3.38 billion), missing analysts' forecast for2.69 billion euros, hit by shrinking refining margins, lower oilprices and delays at key fields such as Kazakhstan's Kashagan.
Full-year output edged down to 2.299 million barrels of oilequivalent (boe) a day from 2.3 million in 2012 - a figure thatwill not help the fifth-biggest global oil company shake off areputation for missing production targets.
Chief Executive Christophe de Margerie's initial 2-3 percentoutput growth goal for 2013 was later dropped and the firm'sfinance chief still expected an increase last September.
Defending the company's record at a news conference later,CFO Patrick de la Chevardiere said that unlike other top oilcompanies the group still had a growth target - to reach 3million boe per day by 2017 - and "in terms of production we arealone in having a production level that is flat. The others areall falling."
Production delays at some projects where Total is notoperator, including Kazakhstan's giant Kashagan field, in whichTotal has a 16.81 percent stake, and Angola LNG are holding backgrowth overall.
De Margerie told reporters it was too early to say whenoutput at Kashagan, halted late last year due to a leaking gaspipe, might restart.
"We haven't finished studies on the pipes. Overall, thereshouldn't be leaks on the offshore part, the most worrying part,but certainly leaks onshore, in which case it might not be toodifficult to repair," De Margerie added.
In the fourth quarter Total's output fell 0.5 percent from ayear ago due to declines and maintenance work on matureproducing fields such as Elgin/Franklin in the North Sea and OML58 in Nigeria. Security issues caused a 1 percent fall, with aworsening situation in Nigeria and Libya. This was itself offsetby 1 percent growth from start-ups.
Other big oil firms have also reported lacklustrefourth-quarter results, with Shell posting what it saidwas the least profitable quarter in five years, while Exxon and Chevron also disappointed investors.
Total is betting on a string of start-ups in 2014 to seeproduction rise again, including Angola's $8 billion CLOVproject and the $5 billion Laggan-Tormore field off the coast ofScotland.
The group, Europe's third-largest investor-owned company bymarket value, said it would cut gross capital expenditure to $26billion in 2014 from $28 billion last year, and said it wouldreward investors with a 3.4 percent rise in its quarterlydividend to 0.61 euros a share from 0.59.
Total shares were up 1.5 percent at 44.235 euros after theannouncement. Total's shares have outperformed its peers in2013, rising 19.3 percent in dollars, compared to 17 percent forBP, 16.9 percent for Exxon Mobil, 15.5 percent for Chevron and4.2 percent for Shell.
"All told, the tone is constructive with the dividendstatement and capex (capital expenditure) guidance supportive,"said Deutsche Bank analysts in a research note.
"A decent set of Q4 results from Total, although, after thelikes of Shell, BG and BP, the bar was fairly low," saidInvestec analysts.
Spurred on by historically high oil prices in the past fewyears, integrated oil companies increased their explorationspending to look for hydrocarbons in areas that until recentlywere deemed too remote or risky. Total's own 2013 spend of $28billion was up from less than $24 billion the previous year.
But the shareholders who control them have raised thepressure to keep a lid on costs as they fear the oil price cyclecould turn down and are demanding more generous payouts.
Total, which embarked on a so-called "high-risk,high-reward" exploration strategy to find giant fields in areassuch as southern African seas, conceded last month it wouldstart what De Margerie called a "soft landing" in capitalexpenditure.
"We maintain a rather substantial exploration budget of $2.8billion however, even if, it's true, we did not find the majorfield we were looking for in 2013," said De La Chevardiere. "Butour efforts continue in 2014."
