UPDATE 2-Incitec Pivot H1 profit triples, ups year forecast

(Adds analyst comment, Metex stake, share price)

SYDNEY, May 5 (Reuters) - Australia's top fertiliser maker, Incitec Pivot Ltd (IPL.AX: Quote, Profile, Research, Stock Buzz), said its first-half profit more than tripled to a record, spurred by soaring prices that are set to propel year earnings above forecast amid a global agricultural boom.

Incitec, which has made a A$3 billion-plus ($2.8 billion) bid for Dyno Nobel Ltd DXL.AX, raised its year earnings estimate by around 19 percent and said demand for fertiliser should continue to grow unabated, leading to continued strength in prices.

"You have prices of coal going up and prices of fuel going up in response to huge economic growth in China and India and other areas. That in turn sparked demand for food," said Chief Executive Julian Segal.

"As the standard of living in these countries increases, they want to eat more and they want to eat better. Fertiliser is an answer to the problem."

Earnings before interest and tax (EBIT) for 2008 would likely rise to A$850 million, based on an industry forecast price of US$1,100 a tonne for diammonium phosphate (DAP) in the second half, Chief Financial Officer James Fazzino said.

A previous EBIT company forecast of A$700-730 million "now looks conservative," Fazzino said, adding the company was basing its internal forecasts on EBIT of A$850 million and that at current spot prices of around $1,200 a tonne, Incitec's 2008 EBIT would reach A$915 million.

Analysts had already been expecting A$886 million EBIT this year, according to the average of nine Reuters Estimates forecasts taken before the announcement.

"We knew upgrades were coming with this result. Potentially that A$850 (million) may prove a bit conservative," said Belinda Moore, analyst at ABN AMRO, who has a buy recommendation on the stock.