Petronas posted a net profit of 12.60 billion ringgit ($3.32 billion) for the year to March 2000, up 85.1 per cent from 6.81 billion in the previous year.

Analysts had expected earnings of about 10 billion ringgit.

Turnover increased by 43.3 per cent to 60.63 billion ringgit from 42.31 billion.

"The rebound in crude oil prices, improving demand and economic recovery in Asia enabled Petronas to report another year of record performance, with group revenue and earnings surpassing pre-crisis levels," said Petronas president and chief executive officer Hassan Marican.

In line with stronger international prices, the weighted average price of Malaysian crude oil increased by 74 per cent during the financial year to $22.63 a barrel.

Hassan predicted another strong financial performance in the current year."Our earnings should remain quite bullish, if there is no economic slowdown and the recovery in Asia-Pacific continues," he said.