By Inti Landauro

PARIS--Engie SA (ENGI.FR) lowered its outlook for profit this year after weak natural gas and electricity prices in addition to slack weather-related demand in France, the power utility's main market, led to an 11% drop in nine-month revenue.

Engie, whose activities include nuclear-power plants in Belgium and hydroelectric dams in Brazil, said net recurring income--a measure that strips out restructuring costs and other impairments--will be close to the lower end of its previously forecast range of 2.4 billion euros ($2.62 billion) to EUR2.7 billion.

The energy company said earnings before interest, taxes, depreciation and amortization in the nine months to end-September fell 5.4% to EUR7.7 billion on the drop in revenue to EUR47.5 billion.

Like other power utilities in Europe such as Germany's EON SE and RWE AG, Engie has struggled with sluggish demand for energy across Western Europe amid a mild economic recovery despite ultra-low interest rates.

Electricity prices have also been under sustained pressure from a glut of electricity supply helped by government-subsidized growth in renewable energy that has made traditional power plants less profitable. Engie has had close down conventional power plants and write down assets worth billions of dollars over recent years.

Engie, led by Chief Executive Isabelle Kocher, has said it plans to reduce its exposure to energy prices by focusing on services and regulated businesses in which long-term contracts ensure stable profitability. As part of this plan, the company embarked on a multibillion-euro program of asset sales.

Engie said that so far it has sold EUR6.1 billion worth of assets, the equivalent of 41% of the target for the end of 2018.

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

(END) Dow Jones Newswires

November 10, 2016 03:03 ET (08:03 GMT)