Eni profits slump on lower prices

ROME

Italian energy giant Eni said on Oct. 27 its net profit fell 67 percent to 1.91 billion euros in the third quarter of 2023, hit by falling oil and gas prices.

The figure was however higher than predicted by analysts surveyed by financial data firm FactSet, who had forecast a profit of 1.64 billion euros.

Adjusted net profit also fell, by 51 percent to 1.81 billion euros.

Like its competitors, Eni benefited last year from the spike in gas and oil prices linked to the war in Ukraine, posting a record net profit of 13.8 billion euros.

The situation changed in 2023, with the price of a barrel of North Sea Brent down 14 percent in the third quarter, at an average of $86.76, the company said in a statement.

This drop is however smaller than the 31 percent fall recorded in the second quarter, when the average price was $78.39 a barrel.

In addition, the benchmark price of natural gas fell 83 percent in the third quarter, Eni said.

The group's turnover fell 40 percent in the three months to 22.31 billion euros, well below analysts' expectations of 32.58 billion euros.

Adjusted operating profit fell 48 percent to 3.01 billion euros in the third quarter.

But Eni raised its forecast of adjusted operating profit for the whole year to 14 billion euros, up from 12 billion previously, as oil prices start to rise again on concerns over the impact of the Hamas-Israel war.

Eni now expects a price of Brent to be $84 on average for 2023, compared to $80 forecast previously.

The group produced 1.63 million barrels a day of hydrocarbons during the third quarter, up four percent.

Eni on Monday agreed a 27-year deal with Qatar for a share in the Gulf emirate's huge North Field gas expansion project.

Earlier this month, it also announced a significant gas find in Indonesia.