The Italian energy giant Eni Group announced yesterday that its net profits fell by 67% to 1.91 billion euros in the third quarter of this year. But the number is higher than expected by analysts surveyed by the financial data company FactSet. They expected profits to reach 1.64 billion euros. Adjusted net profits, a figure closely followed by markets because it does not include exceptional factors, fell 51% to 1.81 billion euros.
Like its competitors, Eni benefited last year from the rise in oil and gas prices due to the war in Ukraine, recording record net profits of 13.8 billion euros.
The situation changed in 2023, with the price of a barrel of Brent North Sea crude falling by 14% in the third quarter, to record an average of $86.76, according to a company statement.
But the decline is less than the decline of about 31% recorded in the second quarter, when the average price of a barrel reached $78.39.
Eni stated that in addition, the reference price for natural gas fell by 83% in the third quarter.
The group’s revenues fell by 40% in the three months to 22.31 billion euros, much lower than analysts’ expectations of 32.58 billion euros. Adjusted operating profits fell by 48% to 3.01 billion euros in the third quarter.
But Eni raised its forecast for adjusted operating profits for the full year to 14 billion euros, compared to 12 billion previously, while point prices began to rise again due to concerns related to the repercussions of Middle East tensions.
Eni currently expects Brent crude oil to reach $84 in 2023, compared to $80 according to previous expectations.
The group produced 1.63 million barrels of fuel per day during the third quarter, an increase of 4%.
On Monday, Eni reached a 27-year agreement with Qatar to supply liquefied natural gas to Italy.
It also announced earlier this month a major oil discovery in Indonesia.
2023-10-27 22:03:04
#decline #Italian #Eni #profits #quarter #billion #euros
