UPDATE 3-Spain's Gas Natural raises Q1 profit 10 pct

(Adds CEO quotes, updates shares)

By Joe Ortiz

MADRID, May 9 (Reuters) - Spanish energy company Gas Natural (GAS.MC: Quote, Profile, Research, Stock Buzz) said on Friday first-quarter net profit rose 10.2 percent to 335.8 million euros ($515 million), matching market forecasts and boosted by its domestic electricity business.

The company also repeated it is not looking at any takeover proposals despite widespread market rumours to the contrary.

"It's possible that an opportunity will present itself and in that case the company will study it," Chief Executive Rafael Villaseca told analysts in a conference call. "Right now, we are not considering any corporate deal."

The shares opened lower after the results and by 0945 GMT had extended losses to 2.8 percent at 36.92 euros, against a 1.3 percent fall in the DJ Stoxx European utilities index .

Gas Natural's earnings before interest, tax, depreciation and amortisation (EBITDA) were slightly ahead of expectations, rising 15.4 percent to 725.9 million euros.

A Reuters poll of seven analysts had forecast, on average, a net profit of 333.7 million euros and EBITDA of 712.7 million.

Profits benefited from a continued sharp improvement in its Spanish electricity business where core profit rose 124 percent to 137.1 million euros, Gas Natural said.