![Woodside is forecasting LNG production growth this year.](/content/dam/images/g/k/f/j/a/z/image.related.afrArticleLead.620x350.gui464.png/1487720925183.jpg)
Woodside Petroleum has seen the results of efforts to cut costs and lift production as full-year profit surged, just beating consensus forecasts.
Net income for 2016 jumped to $US868 million, up from $US26 million in 2015. Sales revenues slid 19 per cent to $US4.075 billion, despite a 3 per cent increase in production.
Chief executive Peter Coleman said Woodside had beaten production targets, cut operating costs and acquired two "quality growth assets" in 2016, as well as sanctioning the $US1.9 billion Greater Enfield oil project in Western Australia.
He said the new Wheatstone LNG project, operated by Chevron, was on track to start up in mid-2017, while Woodside was studying an expansion of its Pluto venture to create a "Burrup hub" for LNG.
"We are evaluating opportunities to maximise our investment in Pluto LNG by undertaking further capacity enhancements and mid-scale or large-scale expansion," Mr Coleman said.
"In addition, we are planning for the construction of infrastructure that will enable us to supply LNG from Pluto to fuel the local mining and marine sectors. This is part of our broader objective of growing the LNG market."
Production costs per barrel of production fell by 28 per cent to $US5 per barrel, with gas costs now at about $US3.50 per barrel.
Mr Coleman also highlighted Woodside's gas discoveries in Myanmar and said the company was preparing to start a program to drill at least four and potentially up to seven wells as it sought the best way to develop the finds, which hold about 2.4 trillion cubic feet of gas.
Woodside said production should expand by about 15 per cent between 2017 and 2020 from projects that have already been sanctioned. But output this year is still set to fall, with Woodside confirming guidance of between 84 million and 90 million barrels of oil equivalent, down from 94.9 million boe in 2016.
Woodside declared a final dividend of US49¢ a share.
For full coverage of today's earnings, go to the AFR Results Wrap Feb. 22