Dangote Refinery posts N6.29trn nine months profit on full-capacity run

… revenue more than doubles to N29.96trn

Africa’s industrial landscape is shifting dramatically as the Dangote Petroleum Refinery and Petrochemicals transitions from a massive capital venture into a powerhouse of profitability.

Fueled by peak operations and overwhelming investor enthusiasm, the continent’s largest oil processor is marking historic milestones. The Lagos-based refinery and petrochemicals company reported a net income of N6.29 trillion ($4.725 billion) for the nine months end September 30.

The net income of $4.725 billion (approximately N6.29 trillion) for a 9-month period places the Dangote Petroleum Refinery among the most profitable corporate entities in Nigerian history.

While state-owned entities like the Nigerian National Petroleum Company (NNPC) Limited have previously posted multi-trillion-naira figures (such as N5.7 trillion reported for a full fiscal year), a private corporate entity like Dangote Petroleum Refinery and Petrochemicals raking in over $4.7 billion in just nine months shatters conventional private-sector profit records in the country.

Read also: Ethiopia joins Dangote IPO as refinery widens African investor access

This massive earnings leap has been propelled by the refinery operating at its peak processing capacity of 700,000 barrels per day alongside strong global refining margins.

With processing rates hitting 700,000 barrels per day, revenue more than doubled to reach N29.96 trillion ($22.5 billion). The firm closed the period holding N866.51 billion ($650.8 million) in cash, a notable improvement against N2.26 trillion ($1.7 billion) in debt held a year prior.

Owned by Africa’s richest man, Aliko Dangote, the mega-refinery is currently pursuing the continent’s largest-ever initial public offering, aiming to raise N2.13 trillion ($1.6 billion) by offering 4.1 billion shares.

During a facility tour, Dangote revealed that investor demand has vastly outpaced expectations, exceeding the target by three to four times.

In response to this unprecedented appetite, David Bird, chief executive officer, Dangote Petroleum Refinery and Petrochemicals noted that the company extended the IPO window by two weeks to accommodate heavy interest from across the continent.