UPDATE 2-Krka sees likely boost to FY net profit

* Basic 2009 forecast unchanged

* But release of provisions could boost FY by 69 mln euros

* Q1 sales flat at 245.2 million euros

* Shares down by 2.59 percent

(Updates with quotes, details)

By Manca Ulcar

NOVO MESTO, Slovenia, May 14 (Reuters) - Slovenian generic drugs producer Krka (KRKG.LJ) reported flat first quarter net profit on Thursday and signalled a likely rise of 69 million euros ($93.53 million) in its net forecast for the whole year.

Chief executive Joze Colaric said the group expected to release provisions of 87.7 million euros set aside for law suits over patents recently revoked by the European Patent Office, lifting the full-year net profit forecast by 69.3 million.

The original forecast was for a 3 percent rise to 161 million euros with sales up 11 percent at 1.06 billion.

"The probability that those provisions would be released is high," Colaric said.

First quarter net profit was 43.9 million euros compared with 44 million in the same period of 2008.

"The profit would have been even higher if local currencies in some of our markets had not fallen, such as (Russia's) rouble," Colaric said.

The company also confirmed that net sales in the first quarter were flat at 245.2 million euros.

Colaric said the company wanted to boost ownership of its own shares to 10 percent from the current 4.6 percent within the next three years.

The shares would be used in the event that Krka took over another company or if it establish a strategic partnership.

Krka has said it was eying acquisitions but Colaric said on Thursday no large takeover was imminent. He said that with Krka's low indebtedness it would be able to get a bank loan for a takeover without any problems.