UPDATE 1-Peugeot hits new earnings record despite Opel loss

* PSA shares rise

* PSA hits earnings records despite Opel loss

* New models power sales, profit gains

* Mid-term guidance to be reviewed next year - CFO (Adds comments, details, background)

PARIS, March 1 (Reuters) - Buoyant sales of new models helped French carmaker PSA Group shrug off losses at newly acquired Opel to lift 2017 revenue, profit and operating margin to new records.

PSA shares climbed on Thursday after the maker of Peugeot, Citroen, Opel and Vauxhall cars said net income rose 11.5 percent to 1.93 billion euros ($2.35 billion) on a 20.7 percent revenue increase to 65.21 billion.

Operating income jumped by almost a quarter to 3.99 billion euros even after a 179 million euro Opel loss since the Aug. 1 consolidation of the former General Motors business. The group-wide automotive operating margin fell to 5.9 percent from 6 percent.

"We have a very agile company, and we know how to move around the chaos," Chief Executive Carlos Tavares told reporters and analysts in a presentation at group headquarters.

Rebounding from a 2012 brush with bankruptcy, PSA is pursuing an ambitious turnaround under Tavares, former second-in-command to Renault boss Carlos Ghosn. The group is also racing to bring the Opel lineup into compliance with European Union carbon emissions targets.

Strong sales of a revamped Peugeot 3008 compact SUV and Citroen C3 mini improved PSA's product mix, lifting revenue by 4.5 percent and operating profit by 904 million euros.

PSA shares were up 3.6 percent at 19.28 euros in early session trading, extending their gains so far this year to around 10 percent, compared with a gain of roughly 2 percent for the Stoxx Europe 600 Autos & Parts index

Reiterating 2021 goals that include a 6 percent automotive margin excluding Opel - compared with 7.3 percent in 2017 - Chief Financial Officer Jean-Baptiste de Chatillon said the targets will be reviewed early next year and hinted that they could be raised.

"Let's see in 2019," Chatillon told reporters when asked about the likelihood of a guidance increase. "We're certainly doing quite well right now."

PSA's full-year results beat analyst expectations of 1.9 billion euros in net income, 3.53 billion in operating profit and 64.68 billion in revenue, based on the median estimates in an Inquiry Financial poll for Reuters.

In a sign of the stiff challenge posed by tightening EU emissions targets and declining sales of fuel-efficient diesels, however, Tavares implicitly criticised governments for the slow rollout of electric-car charging networks.

Financial penalties for non-compliance should be reduced where charging infrastructure remains inadequate, Tavares said in a Financial Times interview published on Thursday. "Consumers will not buy (electric) cars that they are not able to charge."

The French carmaker raised its proposed dividend to 0.53 euros per share from the 0.48 euro payout on 2016 earnings.

Last month, PSA's French rival Renault also posted record sales and profits for 2017.

($1 = 0.8205 euros) (Reporting by Laurence Frost Editing by Sudip Kar-Gupta)