LONDON, August 18, 2008 (AFP) - The world's biggest miner BHP Billiton on Monday announced record annual net profits of 15.39 billion US dollars (10.46 billion euros), driven by soaring commodity prices and strong Asian demand.

The Anglo-Australian resources giant, which was particularly boosted by higher earnings from petroleum and iron ore, beat last year's net profit of 13.42 billion dollars by 14.7 percent to set an Australian corporate record.

'Demand for raw materials in the emerging market economies has remained strong,' BHP said in an annual results statement.

'In particular, China remains a key driver of global commodity consumption through its position as a net importer of raw materials,' said BHP, which launched a hostile takeover bid for rival Rio Tinto in February.

The group's share price closed up 0.52 percent at 1,537 pence in London.

BHP Billiton chief executive Marius Kloppers, addressing a media briefing after the results, said the group's 150-billion-dollar offer for Rio Tinto made 'more sense than ever.'

'In the context of the longer-term growth, the demand challenges that the world will deliver and the supply challenges that I have described, the combination of BHP Billiton and Rio makes more sense than ever,' Kloppers said.

Revenues rocketed 25.3 percent to 59.47 billion dollars in the 12 months to of June, BHP said in the earnings release that was published simultaneously in Sydney and London.

'We have achieved another year of record earnings, driven by excellent operating performance, cost control and the delivery of high margin growth projects into strong market conditions,' it said.

BHP said higher oil prices had helped the results, along with increased prices for iron ore, copper, lead, silver and gold. But it added that higher costs, particularly energy, fuel and shipping expenses, had offset some gains.

Underlying profit was up 21 percent at 24.28 billion dollars.

The firm said it expected prices to remain high in the short term but acknowledged there would be more volatility.

'The effects of current weaknesses in the developed economies on demand for our commodities should be minimal driven by ongoing strong demand from the emerging economies,' BHP said.

Base metals were the biggest revenue spinners, with underlying profit growing 16.2 percent to 7.99 billion dollars while earnings before interest and tax for iron ore rose 69.8 percent to 4.63 billion dollars.

The company's petroleum division was the second highest earner, bringing in underlying profits of 5.49 billion dollars due to increased production and higher oil prices.

BHP's petroleum division is a key point of difference between it and Rio, a firm it wants to take over despite concerns in resource-hungry China that such a merger would create a behemoth with too much power over global iron ore supplies.

BHP's Australian-listed shares have dropped 22.2 percent since May as falling commodity prices, sparked by concerns of a global economic slowdown, have weighed on the resources sector.

-- Dow Jones Newswires contributed to this story --