By David Winning 
 

SYDNEY--Woodside Petroleum Ltd. (WPL.AU) Wednesday booked a 1.9% fall in first-half net profit, largely due to one-off costs incurred in getting its 14.9 billion Australian dollar (US$15.6 billion) Pluto liquefied natural gas terminal into production in late April.

Woodside--Australia's second-largest oil and gas producer by output after BHP Billiton Ltd. (BHP.AU)--said net profit for the six months to June 30 fell to US$812 million from US$828 million a year earlier.

Underlying profit--a smoothed measure closely watched by analysts--rose 4.5% to US$865 million, missing the US$885 million average of seven analyst forecasts compiled by Dow Jones Newswires.

Woodside's hopes of capitalizing on an Asia-led demand boom for clean-burning fuels by adding more processing units to Pluto has suffered a blow after the Perth-based company said a drilling campaign offshore Western Australia state failed to find enough natural gas.

"A break in the drill program is required to allow a thorough evaluation of the well results and to rebuild the exploration portfolio," Chief Executive Peter Coleman said in a statement to the Australian Securities Exchange.

Talks with companies that have discovered gas fields nearby Pluto will continue through the remainder of this year and 2013, which could lead to Pluto being expanded, Mr. Coleman said.

The downbeat note on Pluto's expansion was countered by Woodside upgrading its production target for this year to between 77 million and 83 million barrels of oil equivalent. That compared with earlier guidance of between 73 million and 81 million BOE.

-Write to David Winning at david.winning@wsj.com

Order free Annual Report for BHP Billiton Plc

Visit http://djnweurope.ar.wilink.com/?ticker=GB0000566504 or call +44 (0)208 391 6028

Order free Annual Report for BHP Billiton Plc

Visit http://djnweurope.ar.wilink.com/?ticker=US05545E2090 or call +44 (0)208 391 6028

Subscribe to WSJ: http://online.wsj.com?mod=djnwires