UPDATE 1-Saipem says Brazil accident won't derail profit goal
* Saipem confirms 2014 EBIT at 600-750 mln euros
* To take hit of 40 mln euros from Brazil accident
* CEO reiterates 2014 will be transition year (adds CEO and analyst comment, shares)
MILAN, April 24 (Reuters) - Italian oil service group Saipem said a charge relating to an offshore accident in Brazil earlier this year would not stop it from meeting its 2014 profit target.
Saipem said it will be hit with a 40 million euro ($55.32 million) charge for dropping a steel pipe into the Atlantic Ocean and delaying efforts to expand an oilfield.
Saipem, 43 percent owned by oil major Eni, delivered first quarter earnings on Thursday and confirmed earlier guidance that it expects to report net profit of 280-380 million euros in 2014 after a restated net loss of 159 million euros in 2013.
The company lost around half its market value last year after two profit warnings triggered by lower-than-expected margins and a probe into alleged corruption in Algeria.
"We confirm 2014 will be a transitional year but we are creating the grounds for a recovery that will boost profits in the medium term," Saipem CEO Umberto Vergine said in the statement.
Earlier on Thursday French oil services group Technip stuck to targets for this year after first quarter sales beat its expectations. Continuación...