UPDATE 2-PGS upbeat on seismic demand despite Q4 hit

* Says seeing pick-up in demand for seismic scans

* Turns to Q4 operating loss, hit by $161 mln impairments

* Maintains 2009 EBITDA target, trims capex

* New-build programme delayed, faces termination risk

* Shares up 7.1 percent on rising market

(Adds quotes, analysts, details)

By Wojciech Moskwa

OSLO, Feb 19 (Reuters) - Norwegian seismic surveyor Petroleum Geo-Services (PGS.OL) said it saw signs of growing demand for its scans from oil and gas companies, as it posted a fourth-quarter operating loss due to heavy impairments.

Underneath the write-downs, PGS saw record cashflow in the quarter and a sharp fall in costs, mainly on the back of lower fuel prices for its fleet, and it affirmed its 2009 guidance.

Operating losses, including a $161 million impairment, came to $27 million in the October-December period, against a profit of $77 million a year earlier.

The average forecast from a Reuters poll of 15 analysts was for a $15 million operating loss as PGS, along with its peers, suffers from fast-falling oil prices that have slowed or derailed projects to tap new oil and gas resources.

Seismic scans of the seabed -- predicting which areas could hold oil and gas resources -- often appear in the early stages of the exploration projects, making them susceptible to downturns.

"It looks like oil companies took a big pause around November ... and now we see interesting surveys coming up," Chief Executive Jon Erik Reinhardsen told a news conference.

"Clearly there is some pressure on margins and we have seen them come down -- they are no longer at 50 percent but above 20 percent," he said.

PGS's EBIT margin, excluding impairments, rose to 29.1 percent in the quarter, from 20.5 a year earlier.

By 1054 GMT, shares in PGS were up 7.1 percent to 24.85 crowns, against a 0.4 percent rise on Oslo's .OSEBX index.

The impairment charge mostly related to losses on intangible assets in its electromagnetic (EM) technology unit, MTEM, "as a result of a weaker EM market and reduced EM ambitions in 2009".

Reinhardsen said EM costs were still too high compared with traditional seismic scans, which map sound echoes.

PGS has in past years expanded its fleet with high-capacity vessels capable of scanning more area than its peers, boosting competitiveness.

PGS said it can boost revenues through sales of seismic data in its library if spending on new surveys drops off.

"We are industry leading in cost, productivity and return from library, and well positioned to generate healthy cash flows even in a weak market," Reinhardsen said.

"The order book of more than $1 billion provides a solid platform going forward."

REBOUND FROM "COMPLETE COLLAPSE"

PGS repeated its 2009 core profit (earnings before interest tax, depreciation and amortisation) view of $800 million to $925 million, against $968 million in 2008.

"They reaffirmed their guidance, that's the most important thing," said Ole Martin Westgaard, analyst at ABG Sundal Collier. "They also gave an indication that the seismic market has picked up from a complete collapse at the end of last year."

PGS said two vessels under construction at a Spanish yard were "significantly delayed" and risked breaching termination dates in a charter contract PGS signed with WesternGeco, the seismic arm of U.S. oil services giant Schlumberger (SLB.N).

WesternGeco is entitled to terminate the charters if the vessels are not delivered within 120 days of Nov. 30, 2008, and Mar. 31, 2009, respectively, PGS said.

Officials declined to specify PGS's exposure to potential losses.

PGS also trimmed 2009 capital expenditure target to $400 million from a $400 million $450 million range given in December. (Reporting by Wojciech Moskwa; Editing by Simon Jessop and Andrew Macdonald)