Italian oil and gas giant Eni reported a net profit slide of 33% in the first quarter as oil and gas prices fell from highs seen at the start of Russia's invasion of Ukraine.

The net profit of 2.39 billion euros ($2.62 billion) fell short of the analyst consensus estimate from financial information provider Factset, which anticipated a profit of 2.54 billion euros.

Eni's shares fell 1.3% in morning trading, while Milan's FTSE Mib index was down 1.8% overall.

Adjusted net profit fell by 11% to 2.9 billion euros, attributed to "lower oil and gas prices and the UK energy profit levy." The windfall tax imposed on big oil companies in May is aimed at funneling a portion of the vast profits enjoyed by them to help benefit households.

CEO Claudio Descalzi praised Eni's performance "despite a weakening scenario," thanks in particular to the "recovery in hydrocarbon production."

Last year, Eni posted its best net profit in more than two decades, at 13.8 billion euros, a result boosted by soaring gas and oil prices in the wake of the war in Ukraine.

The decline in oil prices in recent months has weighed on the entire sector. The price of a barrel of North Sea Brent crude averaged $81.27 in the first quarter, a drop of 20% from the same period last year, according to Eni.

Revenues slumped by 15% in the quarter to 27.18 billion euros, after having more than doubled in the year-ago first quarter.

Eni's hydrocarbon production steadied at 1.65 million barrels per day (mbpd) in the first quarter after falling by 4% in 2022.

Eni forecasts 2023 hydrocarbon production of 1.63 to 1.67 million barrels per day.

In its 2023-2026 strategic plan, Eni confirmed its goal of reducing its greenhouse gas emissions by 35% by 2030 compared to 2018 and by 80% through 2040 before reaching carbon neutrality by 2050.

The company has begun to balance its portfolio with the increased development of renewable energy activities.

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