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By Forrest Crellin

PARIS, May 7 (Reuters) - French utility Engie ENGIE.PA met expectations as it reported a drop in first-quarter earnings on Thursday after warmer weather lowered domestic gas sales and deliveries.

The company, which produces, transports and sells gas and electricity, said earnings before interest and tax (EBIT) excluding nuclear, were 3.4 billion euros ($4 billion), down 8.4% from a year earlier.

That matched the consensus forecast of 3.4 billion euros from analyst estimates compiled by LSEG.

The earnings decline was partially attributable to its energy management business, which supplies power and gas to retail customers and business clients, where operating profit was down 12.2% at 1.14 billion euros, the company said.

The company's renewable and flexible power generation arm also suffered a sharp decline in operating profit, with warmer weather contributing to the 16.1% fall to a little short of 1 billion euros, company data showed.

Engie also confirmed a media report this week that said onshore wind project development had slowed in the United States, but it added that solar and battery sector development continues.

"Some permits are being revoked for onshore wind power. It's clear that obtaining the necessary authorisations is indeed difficult," Engie finance chief Pierre-Francois Riolacci told reporters.

"Even when permitting isn't required on federal lands, we still face challenges getting approval from agencies."

Riolacci also said the company is still targeting the Middle East as a high-growth region for renewable energy development.

"I would say the crisis further validates the idea that moving away from fossil fuels is generally a good one, particularly for electricity production," he said, adding that there has been no disruption for its gas customers as a result of the conflict.

($1 = 0.8509 euros)