By Giulia Petroni 
 

Electricite de France SA said Wednesday that sales rose in the first quarter and confirmed its full-year guidance, but said talks between France and the European Union over the company's restructuring plan remain difficult.

The French energy company said quarterly sales came to 21.95 billion euros ($26.67 billion) compared with EUR20.70 billion in the year-earlier period, boosted by positive tariff indexations in France and better electricity and gas prices conditions. On an organic basis, sales increased by 6.2%.

EDF confirmed that it expects earnings before interest, taxes, depreciation and amortization to be above EUR17 billion in the full year. It also backed its operating-expenses reductions and disposals ambitions for 2022, as well as its target for a dividend payout ratio based of net income excluding nonrecurring items of between 45% and 50% in 2021-22.

EDF said there is still no certainty on the timing and the outcome of discussions between the French government and the European Commission over the company's restructuring plan and reform of the Arenh price mechanism--under which energy suppliers secure nuclear power from EDF at fixed prices.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

May 12, 2021 02:16 ET (06:16 GMT)