Saudi Basic Industries Corp said net profit for the first half 2006 reached 8.8 billion Saudi riyals ($2.3 billion), 10 per cent lower than a profit of 9.8 billion riyals in the same period of 2005 due to an increase in raw materials costs.

Second-quarter profit for the petrochemicals giant was also two per cent down at 4.6 billion riyals on the same period in 2005, when the company recorded a net profit of 4.7 billion riyals.
Sabic vice-chairman and CEO  Mohammed Al Mady said the company had increased second-quarter profit, compared to the first quarter of this year, on a rise in products sales and an improvement in global petrochemicals prices.
Sabic, however, maintained sales volumes across both the first and second quarter 2006.
Al Mady said first-half output reached 23.5 million tonnes, up 4.4 per cent compared to the 22.5 million tonnes output in the same period last year.
First-half sales were 18.8 million tonnes, up from 17.3 million tonnes in the same period of last year.
The value of exports reached 40.2 billion riyals, compared with 37.1 billion in the same period of 2006.
Al Mady said the company would pay a dividend of 1.5 riyals a share, or 3.75 billion riyals, the equivalent of 15 per cent of the company’s capital.
Results for the rest of the year are expected to be boosted by the expansion of its fertilizer plant.
Sabic earlier said it had agreed with a group of banks to raise a $4.8 billion loan for affiliate Kayan Petrochemical Company, which will offer 45 per cent of its capital to the public this year.
Sabic has also borrowed $800 million through Saudi Arabia's first Islamic bond, a 20-year corporate issue that lead managers said would price at 40 basis points above the Saudi interbank offer rate.