UBS In their report, the group’s analysts noted that European oil and gas companies’ fourth-quarter earnings may be impacted by falling prices and rising costs. They added that production in the sector is expected to increase.Analysts noted that while refining margins provided some support to earnings, they failed to remain at high levels throughout the reporting period. Furthermore, as many energy traders tend to adopt a risk-averse stance toward the end of the year, trading profits for companies are also expected to be weak.