MELBOURNE, Aug 19 (Reuters) - Woodside Petroleum Ltd WPL.AX , Australia's largest independent oil and gas producer, reported a 40 percent drop in first-half profit, slightly better than feared as cost cuts partly offset the impact of a sharp drop in oil prices.
Underlying net profit sank to $679 million in the six months to June from $1.136 billion a year earlier. Four analysts on average had expected underlying net profit of $662 million.
Woodside cut its interim dividend to 66 cents a share from $1.11 a share a year earlier, sticking to a policy of paying out 80 percent of its underlying net profit.
It maintained its full-year production guidance for 2015 at 86 million to 94 million barrels of oil equivalent (mmboe), down from last year's record output of 95.5 mmboe.
The company still expects to make a final decision on its main growth project, Browse liquefied natural gas, in the second half of 2016, although analysts have said they expect that to be pushed out to 2017 due to tough market conditions.