UPDATE 3-Repsol to trim 2010 capex after lower Q3

* Repsol Q3 net, operating profit halved

* Q3 EBIT, net profit beat forecasts

* To reduce initial estimate of 5.5 bln eur capex for 2010

* Shares close slightly higher

(Adds coments on capex, dividend from conference call)

By Jonathan Gleave

MADRID, Nov 12 (Reuters) - Spain's Repsol (REP.MC) is targeting still more cost cuts in 2010, including in its 5.5 billion euros ($8.25 billion) capex budget, the oil group said on Thursday after quarterly earnings beat forecasts.

The company moved to cut costs sharply in 2009 after weak refining margins and gas prices ate into profits, and by end-September it had saved about 611 million euros, although its cash position remained negative.

"I haven't reviewed the budget for 2010 but the initial figure is 5.5 billion euros... I have to shave this a little," the oil major's chief operating officer, Miguel Martinez, told analysts on a conference call after the results.

"We were 600-700 million euros short in cash at end September," Martinez added.

Repsol said in February that it planned to save 1.5 billion euros over the course of 2009.

Martinez declined to comment on recent reports that Repsol might cut its dividend but did say, in his opinion, a decision on the 2009 interim dividend would come in November.

Repsol Chairman Antonio Brufau suggested talking about reducing the company's dividend at a recent board meeting. [ID:L9392202]

THIRD QUARTER ABOVE CONSENSUS

Third-quarter net profit at the oil major declined to 279 million euros ($418.4 million), down more than half from last year but beating forecasts, as did operating profit.