But its petroleum division delivered “only” a 31.6% increase in profit, lagging behind the company’s other divisions. Base metals delivered an 88.3% increase, carbon steel was up 148.1% and energy coal was up 163.2%.

However, BHP dismissed speculation that it was considering selling its petroleum division.

BHP chief executive Chip Goodyear said the division was delivering to expectations and announced a revised production target of between 120 and 130 million boe.

Goodyear also admitted that the company’s planned LNG terminal off the California coast was likely to take longer than envisaged to come to fruition.

Despite receiving support from Governor Arnold Schwarzenegger, the Cabrillo Port proposal has attracted widespread community opposition.

BHP said it expected strong growth to continue in the current financial year with developing countries driving demand for resources. But capacity utilisation rates were at extremely high levels and the resources industry was suffering from a lack of capacity to boost production.

"This lack of capacity is compounded by logistical and infrastructure bottlenecks in many regions and this, combined with the pressure on construction and operating costs, translates to a higher risk of supply side shocks than would otherwise be the case," it said.