Falling oil prices have offset a ramp up in production by energy giant Santos, causing a 19 per cent slide in revenue.

The company reported sales revenue of $786 million for the June quarter, down 5 per cent on the previous quarter and 19 per cent from the same period last year.

Production was up 12 per cent from a year ago at 14.3 million barrels of oil equivalent (mmboe), thanks mainly to the company’s stake in the massive PNG LNG project.

The slide in revenue was driven by a 32 per cent fall in the price the company received for its oil, driven by a global oversupply of the market.

But the increase in production has seen the company fare better than rival Woodside, which suffered a 47 per cent slide in year on year revenue for the same period.

Santos shares were down seven cents, or 0.9 per cent, at $7.65 at 1030 AEST.

Meanwhile, Santos has cut its capital expenditure in half in 2015, and is bringing down production costs in response to sliding oil prices.

“Santos is taking positive steps to strengthen the company’s operating position in the lower oil price environment,” chief executive David Knox said in a statement.

The company’s flagship GLNG project at Curtis Island in Queensland was on track to produce its first liquefied natural gas by the end of the September quarter, he said.

Santos also reaffirmed its full-year guidance for production of 57 to 65 mmboe, production costs of between $14.20 to $14.60 per barrel of oil equivalent, and capital expenditure of $2 billion.