ENGIE has reported a decline in first-quarter volumes due to higher temperatures compared to a year earlier, impacting its gas distribution and supply activities in France. The volume effect amounted to -7.1 TWh within the infrastructure division.

The B2C (residential) and B2B (commercial) segments also posted declines of -1.7 TWh and -0.8 TWh, respectively.

This trend mechanically weighs on profitability, with an estimated sensitivity of approximately ±10 million euros per TWh for supply activities and ±8 million euros per TWh for networks.

On the generation side, French nuclear output rose slightly to 2.0 TWh from 1.9 TWh a year earlier, while hydropower remained stable at 4.5 TWh.

Finally, the group specified that its nuclear generation hedging in Europe now exclusively concerns France as of 2026, as Belgian production is no longer exposed to the market following the 10-year extension agreement for certain reactors.

"This document holds no surprises relative to expectations," commented Pierre-Alexandre Ramondenc, who covers the stock at AlphaValue.

The analyst reports that hydroelectricity is expected to suffer from a negative price effect despite stable volumes, while thermal activities will decline, penalized by disposals in the Middle East and unfavorable foreign exchange movements.

The Networks division is expected to remain stable in terms of tariffs but will be impacted by milder weather conditions and lower volumes, a trend also anticipated in other segments, partially offset by capital expenditures.

Regarding B2B, the annual target is maintained but reflects an expected decline, linked to favorable one-off effects last year that are gradually fading. "No impact from the geopolitical context in the Middle East is anticipated," the specialist concluded.

Shortly before noon, the stock was up 0.75% in Paris and has gained more than 26% since the beginning of the year.