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EARNINGS POLL-Tecnicas Reunidas 9-mth EBITDA seen up 34 pct

Published 11/07/2008, 09:47 AM
Updated 11/07/2008, 10:56 AM
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* Tecnicas Reunidas results on Tue, Nov 11 before market opens

* EBITDA seen up 24 percent

* Analysts expecting slowing in order book

MADRID, Nov 7 (Reuters) - Spanish engineering company Tecnicas Reunidas is expected to report a 34 percent rise in nine-month EBITDA (earnings before tax, interest, depreciation and amortisation) to 104.9 million euros ($134.2 million).

A Reuters poll of five analysts also saw net profit at the firm, which specialises in installations for the energy industry, rising 22.8 percent to 94.6 euros and sales growing to 1.8 billion, a 26.9 percent hike.

However, analysts are likely to focus their attention on the company's order books, which they expect will show a quarter-on-quarter fall in an uncertain climate for oil installations.

Tecnicas Reunidas's order book for the nine months ending September will be around 4.7 billion euros, down on 5 billion at the end of June, while the works it has bid for will be around 24.5 billion euros, analysts said.

Companies like Tecnicas could see their ability to spend on new projects checked by the fall in crude oil prices and the downgrading in forecasts for oil demand, as well as the credit crunch, an analyst from Caja Madrid said.

Analysts say Tecnicas only announced one new order in the third quarter, to design and build equipment for a refinery owned by Chilean state oil company ENAP worth $150 million.

It could, however, sign new contracts in the fourth quarter and next year, particularly in Saudi Arabia.

The company's accounts could show a higher proportion of taxes, analysts say, largely due to the larger share of contracts based in Spain.

Tecnicas Reunidas is due to give a conference call for investors and analysts at 1500 GMT.

Following is a summary of forecasts (in simple average in millions of euros):

9M 2008E 9M 2007 VARIATION RANGE

VENTAS 1,785 1,406 26.9% 1,753-1.811

EBITDA 104.9 78 34.4% 102.8-107

NET PROFIT 94.62 77 22.8% 88.5-99

CONTRIBUTORS - Ibersecurities, Venture Finanzas, Deutsche Bank, Caja Madrid and a bank which requested anonymity.

(Reporting by Tomas Gonzalez, translating by Sarah Morris)

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