By Inti Landauro

PARIS--French power utility Engie SA (ENGI.FR) Friday confirmed its targets for 2016 even as its profitability shrunk in the first quarter, reflecting low commodity prices and a mild winter in Western Europe.

The company, which was formerly known as GDF Suez reiterated it expects a net recurring income--a measure that strips out restructuring costs and other impairments--will be between 2.4 billion euros ($2.74 billion) and EUR2.7 billion in 2016 compared with EUR2.6 billion in 2015.

The company reported earnings before interest, taxes, depreciation and amortization, or Ebitda, fell 1.7% to EUR3.5 billion euros in the three months ended March. Sales over the period fell 14% to EUR18.9 billion. Analysts expected sales of about EUR21.14 billion in the first quarter.

The company attributed the revenue decline to lower oil and gas prices and to the lower demand for gas and electricity in its home country during the winter because of the warmer weather.

Like most of its peers in Europe, the group has suffered from sluggish demand for energy in Western Europe, where growth has been sluggish. At the same time, subsidies for renewable energy have made traditional power plants less profitable. As a result, the company had to close down power plants and write down assets worth billions of dollars over the past years.

The company's management has said it plans to reduce the company's exposure to energy prices by focusing on services and regulated businesses in which long-term contracts insure stable profitability.

Write to Inti Landauro at inti.landauro@wsj.com

(END) Dow Jones Newswires

April 29, 2016 02:33 ET (06:33 GMT)