Italian utility Enel SpA (ENEL.MI) Wednesday said first-quarter net profit slipped 45%, in line with expectations, after the year-ago figures were flattered by an exceptional gain.

The Rome-based company also confirmed its 2010 targets.

Enel said net profit was EUR1.05 billion, down from EUR1.91 billion in the first quarter of 2009, when Enel reported a EUR970 million special gain. Revenue climbed to EUR18.12 billion, up 20% from the first quarter of 2009.

Earnings before interest, tax, depreciation and amortization, or Ebitda, rose 16% to EUR4.48 billion on the year, lifted mainly by its increased stake in Endesa SA (ELE.MC). Ebitda is a key profit figure analysts closely watch to measure profit from the core operations.

Enel became Europe 's most-indebted utility after acquiring control of Spain 's Endesa. Financial markets are watchful for any announcement of asset sales that would reduce the utility's large debt pile.

Net debt was EUR51.95 billion at March 31 compared with EUR50.87 billion.

Ebitda beat estimates thanks to Endesa, Enel's Italian generation business and forward sales of electricity, Claudia Introvigne of Banca Leonardo said in a research note. She rates the stock a buy.

A Dow Jones Newswires poll of 10 analysts estimated an average net profit EUR1.08 billion on revenue of EUR16.71 billion. Average debt was predicted at EUR51.72 billion for the end of March.

"The strong operating results achieved during the period, delivered in part thanks to the measures taken to improve efficiency and protect margins, confirm the robustness of the 2010 objectives disclosed to the market last March," said Chief Executive Fulvio Conti.

In March, Enel said it estimates 2010 Ebitda at EUR16 billion, while net debt will be reduced to EUR45 billion.

A conference call is slated for 1530 GMT Wednesday. Analysts and investors will focus on comments regarding the assets disposal program, with an update on the sale of Enel Green Power as the key issue.

Enel's share price is roughly 3% higher over the last three months, while Italy 's FTSE Mib Index is flat over the same period.

At 1420 GMT, Enel shares were up EUR0.09, or 2.2%, at EUR3.88, outperforming the FTSE Mib.

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