The company said in a statement on the bourse website that the result was driven by new production units coming on line.

Operating profit for the quarter was SR9.14 billion and earnings per share for the first half was SR 3.48.

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 SR11.85 billion ($3.16 billion), 91 percent up from SR6.22 billion ($1.66 billion) a year earlier, the company said in a statement to the Tadawul stock exchange.

Net profit in the first half of 2010 totaled SR10.45 billion ($2.79 billion), compared to SR830 million ($221.3 million) 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 SR3.48 (93 cents), compared to SR0.28 (7.5 cents) a year earlier.

SABIC shares closed on Sunday before the earnings announcement at SR88 ($23.47), up 0.3 percent from the day before, and 6.3 percent higher than at the start of the year.