MELBOURNE, Australia (AP) — BHP Billiton Ltd., the world's largest mining company, reported a record annual profit yesterday and said it expects demand for commodities to remain strong.

Net profit for the year ended June 30 climbed 14.7 percent to US$15.39 billion, from $13.42 billion in the previous year, it said.

The result was in line with analysts' forecasts and underpinned by increased production and higher prices for oil, copper, iron ore, coal and manganese.

Underlying profit, or earnings before interest and tax, was $24.28 billion, up 21 percent.

BHP Billiton, which is in the midst of a hostile takeover bid of rival miner Rio Tinto Ltd., is reaping the rewards from the rapid urbanization of China and other developing nations that has been driving up demand for commodities and their prices for the past seven years. "The continuing massive industrialization in China is providing solid support to the global economy," the company said in a statement.

The company's costs increased 4.3 percent, or by $1.18 billion during the year. BHP Billiton said about $575 million of that was due to higher fuel, energy and raw material costs, while exchange rate movements had a negative impact of $1.13 billion on underlying earnings. The company said strong global demand for resources continues to provide cost challenges for the whole industry.

BHP Billiton said its increased dividend for the year was a "strong signal of our confidence" in its outlook. The miner raised its dividend to 41 US cents a share, up from 27 cents a share for the previous year.

The company said it had 28 projects in execution or feasibility studies worth about $24.8 billion.