November 06, 2025 [Reuters]- French energy group Engie missed expectations with an 18% drop in third-quarter earnings, hit by lower hydropower production and gas prices despite increased gas sales volumes because of colder than normal weather.

Earnings before interest and tax (EBIT), excluding nuclear, fell to 1.2 billion euros ($1.40 billion) from 1.47 billion euros in the same period last year and missed the 1.4 billion euro consensus from analyst forecasts compiled by Visible Alpha.

Shares were up 0.57% at 21.07 euros at 0804GMT.

“The normalisation of energy prices penalised us this year, but we have made good progress on our improved performance plan,” finance chief Pierre-Francois Riolacci told reporters.

The benchmark European gas price for the third quarter was 9% lower than the same period a year ago, leading to reduced trading profits.

JP Morgan analyst Javier Garrido described the results as solid, noting that Engie has signed more long-term U.S. power deals with companies such as Meta as demand from data centres booms.

“The company … is positioning itself as the best utility to address the challenges of its tech/data centre customers,” Garrido said in an investor note.

Earnings from gas generation dropped 12.8% year on year for the first nine months of 2025 despite the increased volumes of gas sold.

Lower hydropower output in France resulted in a 6.9% decline in earnings from renewables generation even as Engie started up new projects in North America and Latin America.

Engie benefited from a $101 million arbitration award after prevailing in a dispute against French oil major TotalEnergies over undelivered liquefied natural gas cargoes in 2023 and 2024.