Veolia Environnement SA, the world's biggest water company, has reported a first-half sales increase of 11 percent.

      The bottom line was boosted by acquisitions and new orders that made up for a decline in European heating demand, Bloomberg News reported.

      Sales at the Paris-based company that also has energy, transport and waste-management operations, increased to 15.5 billion euros (US$21.2 billion) from 13.9 billion euros a year earlier, Veolia said yesterday in an emailed statement.

      Veolia has signed 23 contracts with Chinese cities for water and waste treatment and aims to provide drinking water to 50 million Chinese by 2015.

      It raised 2.6 billion euros in June from a share sale to fund expansion.

      The company last year bought Cleanaway UK, a British provider of waste-removal services, for 595 million pounds (US$1.2 billion). It also has a 28 percent stake in Mediterranean ferry operator SNCM.

      The company's shares on Tuesday rose 1.6 percent to 54.49 euros in Paris. The stock has fallen 5.1 percent this year, compared with a 3.8 percent increase in the CAC 40 Index.

      "The strong growth in revenue in the first half is in line with the company's medium-term objectives," Veolia said in the statement.

      Acquisitions and new contracts enable it to "confirm growth and profitability targets for the full year."