However, the company has still managed a fully franked total yearly dividend of 46 cents and has forecast a doubling of total production within the next three years.

Higher levels of exploration expense, $295.5 million compared to $166.8 million in 2002 made a significant impact on comparable profits as the company amortised exploration permit acquisitions made during the year, and had a high proportion of pre-drill expenditure followed by a lower drilling success rate.

Due to natural oil field decline Woodside's net share of production for the year was also down 8.2% at 58.9 million barrels of oil equivalent (mmboe) compared to 2002.

However, the 2003 production target of 55mmboe (set at the beginning of the year) was exceeded by 7.1%, largely due to the operational performance from the North West Shelf assets, achieving in 2003 a record total annual production of 516,000 boe/day (gross).

For the year ending 31 December 2003, total sales revenue was $2059.3 million, a reduction of 8.1% compared with 2002 sales revenue of $2240.6 million. This was principally a result of lower oil production and the effect of a 19.8% increase in the average Australian/US dollar exchange rate.

These declines were partially offset by significantly higher US$ denominated selling prices. For condensate and oil the average realised oil price in 2003 was US$27.32 per barrel, up 24.6% compared with US$21.93 per barrel in 2002.

Despite the fall in net profit the company has approved a final dividend of 25 cents per share, which means that in addition to the interim dividend of 21 cents per share, a total dividend of 46 cents per share for 2003 was achieved, down from the 62 cents per share for 2002.

Production for 2004 has been forecast at 58mmboe although the company will consider up to seven projects for final development approval during the year. Should all the projects receive approval and be successfully completed, Woodside's net production is projected to exceed 100 mmboe by 2007.