Italian energy giant Eni Group announced yesterday that its net profit for the third quarter of this year fell 67% to 1.91 billion euros. But the number was higher than analysts polled by financial data firm FactSet had expected. They expected profits to reach 1.64 billion euros. Adjusted net profit, which excludes exceptional factors, a figure closely followed by markets, fell 51% to 1.81 billion euros.

Like its rivals, Eni posted a net profit of 13.8 billion euros last year due to rising oil and gas prices due to the war in Ukraine.

The situation changed in 2023, with Brent North Sea crude prices falling 14% to an average of $86.76 a barrel in the third quarter, according to a company report.

But that was less than the roughly 31% decline recorded in the second quarter, when the average price hit $78.39 a barrel.

Additionally, Eni said the reference price for natural gas fell 83% in the third quarter.

Group revenue fell 40% in the quarter to 22.31 billion euros, well below analysts’ expectations of 32.58 billion euros. Adjusted operating profit fell 48% to 3.01 billion euros in the third quarter.

But Eni raised its forecast for full-year adjusted operating profit to 14 billion euros, compared with 12 billion previously, as spot prices began to rise again on concerns about the fallout from Middle East tensions.

Eni currently expects Brent crude to reach $84 in 2023, up from $80 in previous expectations.

The group produced 1.63 million barrels of fuel per day in the third quarter, up 4%.

On Monday, Eni reached a 27-year deal with Qatar to supply liquefied natural gas to Italy.

It also announced a major oil discovery in Indonesia earlier this month.