UPDATE 1-Spain's Tecnicas Reunidas cuts 2020 sales target, shares fall

(Adds share price, company comment)

MADRID, Nov 11 (Reuters) - Shares of Spanish engineering firm Tecnicas Reunidas plummeted on Wednesday after the company lowered its sales target for this year as a result of the fallout from the COVID-19 pandemic on the oil and gas industry.

The company said its most recent internal budget implies sales revenues would be above 3.5 billion euros ($4.14 billion)this year compared with 4.7 billion euros in 2019 and a 5.2-5.5 billion euro forecast for 2020 set in December 2019.

“The unexpected outbreak of the pandemic and the uncertainty about its duration has led to a slowdown of the execution of projects in 2020, and, consequently, a delay in contracts and postponement of sales,” the company said in a statement.

Shares of Tecnicas Reunidas were down 7.1% to 7.58 euros in early morning trading, while the IBEX-35 blue chip index was down 0.1%.

The company, a key supplier to the oil and gas industry, had said back in May that it would not meet its full-year sales target as a result of the uncertainty created by the pandemic.

It said on Wednesday that its revenue in the first nine months of the year fell 18% to 2.81 billion euros and net profit shrank 69% to 7.3 million euros.

The budget assumes the environment does not get worse in the remainder of the year, the company said, adding it still expected the margin of earnings before interest and taxes would be 3%.

$1 = 0.8460 euros Reporting by Inti Landauro; Editing by Edmund Blair, Ingrid Melander