Technip Q2 profits top forecasts, ups margin goal

By Marie Maitre

PARIS (Reuters) - Technip (TECF.PA) raised its 2008 profitability target on Thursday as its posted forecast-beating second-quarter profits lifted by underwater projects for the oil and gas industry, pushing its shares higher.

The French oilfield services group lifted its operating margin goal for the second time this year, saying it expected a margin of around 8 percent, up from the 7.6 percent forecast made in May and an earlier target of "above 7.3 percent."

The company predicted full-year revenues of "approximately" 7.4 billion euros, which was at the lower end of a previous sales range of 7.4-7.8 billion euros.

"The overall market remains buoyant, particularly for gas and unconventional oil projects, but project award processes have been slower than in recent years because of cost and price volatility and human and technical resource constraints," said Technip Chief Executive Thierry Pilenko.

Technip shares were 5.8 percent higher at 55.01 euros by 1043 GMT.

"There may be some relief that Technip posted no writedowns this quarter, " said Citigroup analyst David Thomas, while broker Oddo Securities upgraded the stock to "buy," citing an "excellent Q2 and reassuring outlook."

Technip, which competes with Italy's Saipem (SPMI.MI), had booked charges of 270 million euros in January.

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