German utility EON SE warned that Europe may not have seen the end of turmoil in its energy markets and the situation could still take a turn for the worse.

“The crisis is not over yet,” the energy company’s Chief Financial Officer Marc Spieker said Wednesday alongside an earnings report. Germany was one of the countries hardest hit by Europe’s energy crisis last year, with more than half of its gas supply previously coming from Russia.

While energy prices have plunged from last summer’s highs, analysts have warned that a sudden rebound in demand and increased competition from Asia for supplies could reignite volatility in the market.

The firm’s expectation for adjusted earnings to remain broadly in line with last year’s results “factors in the possibility of a further deterioration in the remainder of the year,” Spieker said. EON sees results “towards the upper end” of its guidance of €7.8 billion to €8 billion this year.

“In our financial guidance for 2023 we build on cautious assumptions, taking into account that market prices could go up significantly and also temporarily with significantly increased levels of volatility,” Spieker said later on a call with analysts.

The company’s cautious approach means it might delay an upward revision to its guidance until later in the year, according to Patricio Alvarez, a global utilities analyst at Bloomberg Intelligence.

The company said it nearly doubled results from its consumer-facing Customer Solutions business in the first quarter compared to a year ago, helped by falling commodity prices and higher end prices. Utilities initially struggled to pass on higher costs to consumers last year.

“There is some temporary positive impact within the networks business as a result of redispatch costs, however a strong set of results overall and a positive indication on guidance for the full year,” said Alexander Wheeler, an analyst at RBC Europe Limited.

(Updates with CFO comment, analyst reaction from fifth paragraph.)