UPDATE 1-Cape comfortable with H1 view, says momentum continues

* Says improving revenue visibility to help FY outcome

* Growth in Middle East offsets delays in Australia

* Sees gains from currency exchange rates

* Net debt at June 30 lower than year-end 2008 levels (Adds details)

July 7 (Reuters) - British energy services group Cape Plc (CIU.L) said on Tuesday its trading performance for the first half was in line with its expectations and that it was confident of full-year results on the back of improving revenue visibility.

Cape said headline results for the six months ended June 30 would benefit from favourable exchange rates and strong cash generation during the period had helped the company reduce its net debt to below 2008 year-end levels.

"While we continue to experience some project delays in Australia due to adverse market conditions, this is more than offset by growth in the Middle East markets as evidenced by our recent contract wins," the company said in a statement.

Cape said the positive momentum in the first half had continued into the second half and with improving revenue visibility it was confident of the outcome for the full year.

Cape shares closed on Monday at 188 pence on the London Stock Exchange. (Reporting by Usman Merchant in Bangalore; Editing by Gopakumar Warrier)