UPDATE 1-Saipem shares soar as it reassures investors on outlook
* Confirms full-year guidance for net loss of 300-350 mln euros
* Q2 net loss 685 mln euros vs I/B/E/S consensus 648 mln euros
* Longstanding executive O'Donnell steps down
(Releads, adds analyst, shares)
MILAN, July 30 (Reuters) - Italian oil service group Saipem , which has already issued two profit warnings this year, said on Tuesday that no further surprises were on the horizon, sending its shares sharply higher.
Saipem, 43 percent owned by Italian oil and gas group Eni , said in a statement it expected its net loss for the year to be in the region of 300- 350 million euros ($398-$464 million).
"These are a good set of results in view of the fact that there were rumours out there of a possible third profit warning," Mediobanca Securities oil analyst Andrea Scauri said.
Saipem shares, which have lost almost 50 percent since the start of the year, were up 6 percent at 16.3 euros at 1457 GMT.
In late January, a new management team under CEO Umberto Vergine slashed 2013 net profit forecasts for Saipem because of lower margins on new orders.
Then in June the group said it would post a net loss for the year, blaming increasingly strained relations with Algerian energy firm Sonatrach and project difficulties in Mexico and Canada.
Some analysts had expressed concern the group might lower its outlook for the year because of what they saw as aggressive bidding on a pipe tender in Brazil.
Its peers, Norwegian groups Aker and Subsea 7 , have all issued profit warnings this year, blaming Brazilian activities.
Saipem is embroiled in a legal probe into alleged corruption in Algeria over a series of contracts, which led to the resignation of executives.
In a separate statement Saipem said its deputy CEO and board member Hugh O'Donnell was stepping down after 17 years with the company.
($1 = 0.7545 euros)
(Reporting by Stephen Jewkes; Editing by Francesca Landini and Pravin Char)