UPDATE 1-Vallourec Q2 sales plunge, sees Q3 low point

* Vallourec Q2 sales down 33 pct at 1.082 bln euros

* Sees lower sales, EBITDA in H2

* Shares close up 1.97 pct before results

(Adds details)

PARIS, July 30 (Reuters) - Seamless tube maker Vallourec (VLLP.PA) said quarterly sales plunged, forecast a fall in second-half sales and operating profit, and predicted a low point in activity in the third quarter. Vallourec, which supplies the oil and gas, power, petrochemicals and auto sectors, posted a 33 percent year-on-year drop in second-quarter sales to 1.082 billion euros ($1.53 billion), and pledged deeper cost cuts to counter the fall.

CEO Philippe Crouzet told a conference call that the group had cut operating costs by around 500 million euros in the first half, and would do more in the second half. He did not give a specific target for H2.

The company said in a statement on Thursday it is boosting cost-cutting measures it took during the first half, adding it would further reduce working hours through long plant closures over the summer and extending short-time working in Europe.

But despite these measures, it expects "continuing low volumes and pricing pressure will result in lower sales and EBITDA during the second half.

However, on a more positive note, "there is an overall feeling that maybe the destocking effect we have suffered from is probably coming if not to an end at least close to an end," Crouzet told the call.

Vallourec said that it expected the third quarter to mark a low point, due to seasonality combined with the current economic environment.

Operating income in the second quarter fell 36 percent to 184.9 million euros, or 17 percent of sales.

EBITDA was down 30 percent at 238.5 million euros, leaving a margin of 22 percent, against 26.6 percent in the same quarter a year earlier.

Ten analysts polled by Reuters had forecast sales of 935 million euros for the second quarter, and gross operating income of 190 million euros.

Net income fell 34 percent to 123.9 million euros. This compared with an average of eight analyst forecasts for net income of 95 million euros.

In May Vallourec said it was sticking with a forecast of 800 million euros of capital expenditure in 2009.

The group said on Thursday it was further reducing working capital requirements which would enable it to finance its strategic capex programme and prepare for a recovery in demand.

Vallourec said in May during its first-quarter results that it expected a drop in sales and operating profit in the coming quarters. [ID:nLD796813] (Reporting by Helen Massy-Beresford and Benjamin Mallet; Editing by Rupert Winchester)