Lower energy prices have hit oil and gas giant Woodside's profit, but the impact has not been as bad as expected due to lower operating costs.
Australia's biggest fossil fuels producer on Tuesday announced underlying net profit fell 14 per cent to $US1.63 billion ($A2.41 billion) for the six months ended June 30.
That was substantially better than consensus estimates, with analysts discouraged by the continued cooling off of oil and liquid natural gas prices from their 2022 peaks as well as several of Woodside's mature assets winding down their production.
The company's strong performance was due to its high operational reliability and effective cost management in spite of inflation, said chief executive Meg O'Neill.
"We continue to deliver on our strategy to thrive through the energy transition whilst maintaining our disciplined capital management," she said.
Woodside produced 89.3 millions of barrels of oil equivalent (MMboe) in the half year, down two per cent on the prior corresponding period.
But production has been boosted by the opening of Sangomar, which achieved first oil in June and has since achieved nameplate gross capacity of 100,000 barrels per day.
The massive Senegalese offshore oil project is one of a clutch of key growth projects Woodside hopes will offset declining production from the North West Shelf.
WA's Scarborough was two-thirds complete at the end of June with first gas expected to be shipped in 2026, while Trion in the Gulf of Mexico is nearing 10 per cent completion and on track for first oil in 2028.
But another major growth strategy has not panned out after rival fossil fuel producer Santos rejected Woodside's $A80 billion takeover offer in February.
The company has looked to put some of that spare capital to use by acquiring OCI's clean ammonia project in Texas and Houston-headquartered Tellurian, including its Gulf Coast Driftwood LNG development, for $US900 million.
Woodside slashed its interim dividend by 14 per cent to US69c per share.
Shares in the company opened Tuesday up 2.8 per cent to a three-week high of $27.11 on the ASX.
