UPDATE 1-PGS posts strong Q3, sees client spending risks

* Posts above-forecast 12 percent EBIT rise in Q3

* Sees increasing risks to client spending due turmoil

* Lowers 2008 guidance to reflect new uncertainty

* Shares down 4.4 pct in early trade

(Recasts, adds clients spending uncertainty, share price)

By Wojciech Moskwa and Richard Solem

OSLO, Oct 24 (Reuters) - Norwegian oilfield services firm Petroleum Geo-Services ASA (PGS) (PGS.OL) on Friday posted above-forecast third quarter profits and said it saw increasing uncertainty about spending on seismic surveys by oil and gas companies.

The company also revised its guidance to reflect the new uncertainties, including expectations of lower revenue growth in its marine operations.

Earnings before interest and taxes (EBIT) rose 12 percent year-on-year to a record high of $188 million in July-September, beating the mean forecast of $171 million in a Reuters poll of 14 analysts.

"We know the financial slowdown will impact market activity, (but) the magnitude is still uncertain," Chief Executive Jon Erik Reinhardsen told a meeting with analysts and journalists.

"Short-term we see uncertainty, and the game will be who is best positioned to handle this uncertainty. Long-term the prospects are still good ... because underlying demand for hydrocarbons is still strong," Reinhardsen added.

Shares in PGS were off 7 percent at 32.45 crowns at 0837 GMT, matching the slide on Oslo's benchmark index .OSEBX.

PGS, which provides seismic surveys to the oil and gas industry, said its new 2008 guidance was less specific due to rising uncertainty about its customers' spending patterns amidst global financial turmoil and dropping oil prices.

PGS now targets revenues of around $2 billion in 2008 and operational profit of $700million to $740 million.

Previously its 2008 goals for marine contracts included 75 percent revenue growth and a 50 percent EBIT margin.

"The new revenue guidance shows growth somewhere in the 60s ... due to a cut in multi-client surveys and lower demand... on the low-end of the streamers market," Chief Financial Officer Gottfred Langseth said.

"The EBIT margin target is now slightly below 50 percent, but the change is not material," he added

Asked if PGS has already seen clients change spending plans, Langseth told Reuters: "We're talking about increased uncertainty in spending in the period ahead but we have a strong order backlog of eight, nine months, so it's too early to say how this will impact us."

PGS said its order book grew to about $1.2 billion from around $1 billion three months ago. It added that it had a "robust financing" situation, mainly with fixed-rate loans.

"There is no need for PGS to refinance in the next few years... Most of debt is at fixed interest and none of the loans have covenants that are really restrictive for PGS," Langseth told a news conference. PGS on Friday also said it was too early to discuss the timing of any dividend payouts and that the company was using cashflow to repay debts.

(Additional reporting by Joergen Frich; Editing by Hans Peters)