Saudi petrochemicals giant Sabic on Sunday reported second quarter net profits of 5.02 billion riyals (USD1.34 billion), 177 percent over the same period in 2009, but down 7.6 percent from the first quarter of 2010.

Saudi Basic Industries Corp, the Gulf's largest listed company and one of the world's top petrochemicals producers, blamed the drop from the first quarter on the lower prices of its products compared to high raw material costs.

Gross profit for the second quarter was 11.85 billion riyals (USD3.16 billion), 91 percent up from 6.22 billion riyals (USD1.66 billion) a year earlier, Riyadh-based Sabic said in a statement to the Tadawul stock exchange.

Net profit in the first half of 2010 totalled 10.45 billion riyals (USD2.79 billion), compared to 830 mln riyals (USD221.3 mln) in the first six months of last year.

Sabic attributed the year-on-year growth to higher prices and higher sales volumes for its petrochemical, plastic and steel products.

However, it said, "the decrease in net profits compared to the first quarter stem from lower prices for most products and the high cost of feedstock and high iron ore prices during the period."

Earnings per share for the first half was 3.48 riyals (93 cents), compared to 0.28 riyals (7.5 cents) a year earlier.

Sabic shares closed on Sunday before the earnings announcement at 88 riyals (23.47 dollars), up 0.3 percent from the day before, and 6.3 percent higher than at the start of the year.

Source: AFP