French utility Veolia reported higher first quarter earnings today and has maintained its financial outlook for the year.

Veolia reported earnings before interest, tax, depreciation and amortisation (EBITDA) for the first quarter to end of March of €1.078bn, up from €970m a year earlier.

Revenues rose 2% from last year to €6.81bn, while net income increased 58.7% to €186m.

Last month Veolia finally announced a €13bn ($15.6bn) merger deal with rival French waste and water management specialist Suez.

Suez also reported increased sales and core profits for the first quarter, helped by recycling activities.

Commenting on the Veolia/Suez deal, Frerot said: “This combination, which should be finalised by the end of the year, opens up great development prospects at a time when environmental priorities have never been higher on the agenda.”

Veolia’s motivation for pursuing its rival Suez was that as a bigger entity, the group could better compete with new challengers emerging in China.