UPDATE 3-Seismic firm PGS beats consensus with Q3 profits

(Adds details, CEO and analyst quotes, updates share price)

By Joergen Frich and John Acher

OSLO, Oct 24 (Reuters) - Norwegian seismic surveyor Petroleum Geo-Services (PGS) (PGS.OL) posted a stronger-than-expected 86 percent rise in operating profit for the third quarter and said 2008 would be better than 2007.

Earnings before interest and tax (EBIT) rose to $167.4 million in the three months to the end of September from $90.2 million in the same quarter last year, the supplier of seismic surveys to the oil and gas industry said on Wednesday.

The result beat an average EBIT expectation of $159 million in a Reuters poll of 12 analysts and came at the high end of the range of estimates of $142 million to $176 million.

"Q3 was a very strong quarter, a very satisfactory quarter," Chief Executive Svein Rennemo told a news conference.

"We believe that 2008 will be a stronger year than 2007," said Rennemo, whom PGS announced would retire in the second quarter of next year. He said that outlook was based on continued high bidding activity and strong pricing.

Booming oil and gas prices have spurred exploration around the globe, lifting the oilfield service industry, including providers of seismic surveys used to decide where to drill.

PGS shares initially rose nearly 4 percent but reversed gains to trade down 1.1 percent at 161.50 crowns by 1112 GMT, valuing the company at about $5.35 billion.