* Q2 refining margin $1.4/barrel vs $11.3 yr earlier
* Maintenance delay to hit Q3 EBITDA by $10-15 million
* Delays major capex projects for 12-18 months
(Updates with comments from conference call, details)
By Nigel Tutt
MILAN, Aug 7 (Reuters) - Italian refiner Saras will not invest in any major projects next year as it puts off capital expenditure because of weak demand for oil products in the economic downturn, it said on Friday.
Saras, Italy's third-biggest refiner by capacity, turned in a second-quarter loss as operations were hit by a heavy maintenance schedule and a fatal accident at its 300,000 barrels per day Sarroch refinery in Sardinia.
"In order to align our investments with the new market scenario ... our capex plan has been revised and all major "growth" projects from 2010 onwards have been postponed by 12 to 18 months," Saras said in its statement on results.
The global economic slowdown has sapped energy demand and forced many companies in the sector to review their investment plans. Saras said global demand for middle distillates, such as its key product diesel, was hit particularly hard.
The "overall effect both of the market and our scheduled maintenance had a negative impact on our margins in the second quarter," Saras General Manager Dario Scaffardi said on a conference call.
Middle distillate demand, however, traditionally picks up in the northern hemisphere's autumn and winter, and Saras said refining margins might improve in the second half.
Its refining margin plunged to $1.4 a barrel in the second quarter from $11.30 a year ago and the premium over the EMC (Energy Marketing Consultants) benchmark shrank to $0.4 a barrel.
Saras executives said it aimed to boost the premium to $2.5-$3 per barrel soon, without giving more precise forecaasts.
Shares staged a late rally, reversing falls immediately after the results, and closed up 11.26 percent at 2.3225 euros as the DJ Stoxx index of oil and gas companies gained 1 percent.
One trader said the stock, which was thinly traded, was seeing interest from investors betting on a recovery in margins.
A Milan analyst who asked not to be named said its valuation was "undemanding."
"The price already factors in a negative scenario. Risks of buying the stock now are limited," the analyst said.
DELAYS AHEAD
Delayed projects will include revamping of the second mild hydro cracking unit and a visbreaking unit, construction of a new steam reforming unit, some energy recovery projects and expansion of the Sarroch refinery tank farm, Saras said.
It confirmed its strategic focus to increase conversion capacity and boost operational activity.
Saras swung into a net loss of 18.3 million euros ($26.3 million) in the second quarter, from a profit of 97 million euros in the same period of 2008. The figure was adjusted for inventories, one-time items and derivatives. A Saras poll of 16 analysts had forecast a net loss of 16 million euros, on average.
Delays from an accident in May when three workers died will take $10-15 million off third-quarter core earnings, in addition to the 5 million euros already announced, Saras said.
All refinery units are now operational and only minor maintenance is scheduled for the rest of the year, it said.
Scaffardi said the 2010 maintenance schedule will be announced on the next conference call.
Finland's Neste Oil last week posted a sharp drop in earnings hit by weak demand and said no upturn was in sight.
But Switzerland's Petroplus, Europe's biggest independent oil refiner, topped analysts' forecast for second-quarter net profit on Thursday. ($1=.6954 Euro) (Additional reporting by Ian Simpson, Svetlana Kovalyova, Gianluca Semeraro and Danilo Masoni; editing by Simon Jessop)