Advanced Petrochemical Company has announced that its South Korean joint venture, SK Advanced, has commenced trial production at its PDH plant on 15 March. According to the announcement, the plant will be subject to performance tests for a period of one and three months to confirm the plant's reliability and sustainability before commencing commercial operations. The financial impact of the new plant will show following the commencement of commercial operations, which is expected to take place during 2Q2016. It is worth noting that the new plant has capacity of 600,000 tonnes per year of propylene. We are positive on the announcement but believe that the project is unlikely to contribute significantly to Advanced’s bottom line this year given the depressed level of propylene prices. While propylene prices have rallied 14% YTD, prices are still not high enough for the project to be a major contributor to earnings. (Tadawul, Yousef Husseini)   Advanced: SAR39.32 as of 14 March 2016, Rating: Buy, FV: SAR45.00 per share, MCap: USD1,720 million, APPC AB / 2330.SE