Tasnee finishes ethylene cracker expansion, trial production starts

The company did not disclose the exact capacity increase or the total investment cost. In previous filings, Tasnee had flagged the expansion as part of a broader strategy to boost output and capture more value from its integrated chain. The trial production milestone is a critical step before the plant can run at full rates.

Tasnee shares traded on the Saudi Exchange. The stock has been range-bound this year as investors weighed the impact of the expansion delay and broader petrochemical cycle headwinds. With the project now in its final commissioning phase, the focus shifts to how quickly Tasnee can ramp up to commercial rates and how the additional volume will affect its earnings.

Analysts at several local brokerages have noted that the expansion, once fully operational, could add roughly 10-15% to Tasnee's ethylene output, based on earlier company guidance. That would boost revenue and potentially improve margins if ethylene prices hold near current levels. The company is scheduled to report second-quarter results in August, which may include an update on the trial progress.

Tasnee's completion of the expansion removes a key overhang for the stock. The next catalyst is the start of commercial production and the subsequent impact on the company's financials.