In its preliminary annual report, the world’s largest diversified resources company yesterday said it was counting down to first production from its Atlantis, Neptune and Genghis Khan oil and gas fields in the Gulf of Mexico and the Stybarrow oil field in Australia, as well as Phase 2 of its Zamzama gas project in Pakistan.

BHP said it expected these developments to “significantly” increase its future petroleum production result.

In fiscal 2006/07, BHP Billiton Petroleum’s underlying earnings before interest and tax was $US3014 million, an increase of $US46 million or 1.5%. This was mainly due to higher oil prices, which offset slightly lower gas prices and a plateau in overall petroleum production.

“Production volumes were in line with last year despite no new major project start-ups,” the company said.

“The impact of foreign exchange [Australian dollars and British pounds] and price-linked costs was unfavourable.”

Across all divisions, BHP’s profit rose to $13.42 billion, up from $10.45 billion a year earlier, bolstered by high commodity prices and strong demand.

Underlying net profit rose 35% to $13.68 billion, beating out consensus expectations of $13.49 billion compiled by Thomson Financial. Revenue for the year climbed 21% to $47.47 billion.

BHP said it produced record amounts of alumina, aluminium, copper, nickel, iron ore, manganese ore and metallurgical coal for the year.

For fiscal 2008, it expects significant volume growth in oil, copper iron ore and nickel.