PERTH (miningweekly.com) – Oil and gas producer Woodside has reported a 7.5% increase in net profit after tax for the first half of 2013, driven by record production and increased operating profit.

The ASX-listed firm reported net profit of $873-million, as first-half production increased by 22.5% year-on-year to 41.9-million barrels of oil equivalent, driven by the first full half-year of production from the Pluto liquefied natural gas (LNG) project.

CEO Peter Coleman said that production was on an upward trajectory owing to the strong performance of the Pluto LNG project since its start-up.

“It is pleasing to see the increase in production volumes, which have more than offset a changing production mix to drive an increase in sales revenue. Our focus now is to enhance margins and build on the value provided by the base business,” he said.

Operating revenue for the half year also reached record highs at $2.8-billion, as a result of the increased production. This was somewhat offset by weaker commodity prices and the Vincent floating production storage and offloading vessel being off station during the first half of the year.

Meanwhile, Coleman noted that Woodside’s securing of new growth opportunities continued alongside a period of increased returns to shareholders, with the company having some $1.8-billion cash and $1.6-billion in undrawn debt facilities to fund this growth.

“We have also made good progress with our fellow joint venture participants on reviewing alternative solutions for the Browse LNG development. As a result, Woodside is now in a position to recommend to the Browse joint venture that a phased floating LNG development be selected, enabling the earliest commercialisation of this world-class resource,” he added.

Woodside earlier this year shot down the proposed onshore development of the Browse LNG project at James Price Point, stating that the concept did not meet the company’s commercial requirements for a positive final investment decision.