Q3: Dangote Refinery posts $4.7bn profit ahead of N2.15trn IPO

Dangote Petroleum Refinery and Petrochemicals has reported a net profit of $4.73 billion for the nine months ended 30 September 2026, reversing a loss of $117.2 million recorded in the corresponding period of 2025, as revenue more than doubled to $22.48 billion.

The unaudited results, released on Tuesday, also showed a sharp improvement in cash generation, with operating cash flow rising to $3.68 billion from $364.7 million a year earlier, while cash balances climbed to $6.69 billion from $809.5 million.

The performance comes as the 700,000-barrel-per-day refinery pursues an initial public offering (IPO) valued at approximately N2.15 trillion, offering 4.1 billion ordinary shares at N525 each in a move aimed at widening African ownership of the industrial complex.

Revenue increased by 144 per cent from $9.2 billion in the first nine months of 2025, while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to $5.52 billion from $627.6 million in the corresponding period, reflecting higher refining throughput, improved operational reliability and stronger refining margins.

The EBITDA margin expanded to 24.56 per cent from 6.83 per cent, underscoring the improvement in the refinery’s operating performance as it moved beyond its initial commissioning and production ramp-up phase.

The balance sheet also strengthened considerably during the period. The refinery moved from a net debt position of $1.73 billion in September 2025 to a net cash position of $650.8 million in September 2026, as its cash holdings exceeded its reported debt obligations on a net basis.

The figures indicate that the refinery generated approximately $8.57 billion in revenue in the third quarter alone, based on the difference between its nine-month revenue of $22.48 billion and the $13.91 billion recorded at the end of June.

EBITDA increased by approximately $2.92 billion in the third quarter, rising from $2.60 billion at the half-year mark to $5.52 billion at the end of September. Net profit similarly rose by about $2.90 billion, from $1.82 billion at the end of June to $4.73 billion in September.

David Bird, managing director and chief executive officer of Dangote Petroleum Refinery and Petrochemicals, attributed the performance to improved operational stability, increased throughput and stronger gross refining margins.

“Our third-quarter performance demonstrates the successful transition from commissioning and ramp-up activities to sustainable commercial operations,” Bird said.

He added that the results reflected the strength of the refinery’s integrated business model and provided a foundation for its next phase of growth.

“With our expansion programme already underway, we remain focused on increasing refining capacity and broadening our product portfolio. We will continue to strengthen our distribution network across Africa and support energy security across the continent, while creating long-term value for stakeholders,” he said.

The financial results provide fresh information for prospective investors as the refinery seeks to broaden its shareholder base through the ongoing public offer.

The Securities and Exchange Commission recently approved an extension of the offer’s closing date from 13 October to 27 October 2026 to accommodate investor interest and facilitate wider cross-border participation across Africa.

Aliko Dangote, president and chief executive of Dangote Industries Limited, had disclosed that subscriptions had exceeded the company’s original fundraising target. He said the objective was to enable more Africans to own a stake in the refinery rather than simply raise additional capital.

The latest results highlight the scale of the business’s earnings and cash generation as it seeks to attract investors. However, the nine-month figures are unaudited and do not, on their own, establish the valuation at which the refinery’s shares should trade.

The performance also comes against the backdrop of the group’s Vision 2030 growth strategy, which includes plans to increase refining capacity, expand petrochemical production and strengthen distribution across African markets.

Located in the Lekki Free Zone in Lagos, the refinery operates an integrated refining and petrochemical complex with a crude distillation capacity of 700,000 barrels per day. Its scale makes it a significant component of Nigeria’s strategy to expand domestic refining, reduce dependence on imported petroleum products and strengthen the country’s position in regional energy markets.

The refinery’s transition to profitability, alongside its stronger cash position, marks a significant change from its financial position a year earlier. The extent to which this performance is sustained, and how investors assess the business under the public offer, will be important considerations as the company advances its expansion plans.