Woodside H1 profit up 86 pct on higher oil price

PERTH, Aug 27 (Reuters) - Woodside Petroleum Ltd (WPL.AX), Australia's second-largest oil and gas producer, on Wednesday reported an 86 percent rise in underlying first-half earnings due to higher prices and increased production.

It said it was on track to meet its full-year output forecast of 80-86 million barrels of oil equivalent.

Underlying earnings rose to A$1.009 billion ($862 million).

Woodside, which declared an interim dividend of 80 cents, had said earlier that total production in the first half rose 4 percent from last year to 36.5 million barrels of oil equivalent. It said on Wednesday that it sees stronger production in the second half.

Shares in Woodside, 34 percent owned by Royal Dutch Shell (RDSa.L), have risen about 12 percent so far this year to Tuesday's close of A$56.50, on par with a near 13 percent gain in the broader S&P/ASX 200 energy index .AXEJ. ($1=A$1.17) (Reporting by Fayen Wong)