Dangote Petroleum Refinery has returned to profitability, reporting $4.725 billion in net income for the nine months ended September 30, as Africa’s largest oil-processing facility reached full capacity and its record-breaking initial public offering (IPO) attracted strong investor demand.
- Dangote Petroleum Refinery has surged back to profit, reporting a remarkable $4.725 billion net income for the first nine months of the year as it hit full operational capacity.
- Revenue skyrocketed to $22.5 billion with the facility now processing up to 700,000 barrels of crude oil daily, propelling Africa's biggest refinery into the global spotlight.
- Strong investor enthusiasm has led Dangote to extend its record-breaking IPO, with demand outstripping the shares on offer by three to four times.
- The IPO aims to raise $2.1 billion for refinery expansion, including a significant share allocation to East African investors to broaden regional ownership.
The facility, owned by Africa’s richest man, Aliko Dangote, reported a profit of $4.725 billion, compared with a loss in the same period last year, according to a statement released on Tuesday. Revenue more than doubled to $22.5 billion as the refinery processed up to 700,000 barrels of crude oil per day.
The company reported $650.8 million in cash, compared with $1.7 billion in debt a year earlier.
The improved performance comes as the refinery seeks to raise billions of dollars through an IPO expected to become the largest share sale in African history.
Dangote extends IPO amid strong investor demand
Dangote Refinery has extended its IPO till October 27, beyond its original October 13 closing date, to give investors across the continent more time to participate. The offering, launched on September 14, involves the sale of 4.1 billion shares and aims to raise $2.1 billion to finance the refinery’s expansion.
Investor interest has been strong, with Dangote saying on Monday that demand for the shares had exceeded the amount on offer by three to four times.
The company is also seeking to broaden participation beyond Nigeria. Nearly 20% of the offering has been made available to East African investors, an allocation that could be worth up to $300.4 million if fully subscribed.
The $20 billion refinery currently has a processing capacity of 700,000 barrels per day and plans to double that capacity by 2030 through a proposed $14.3 billion expansion.
The facility has also reshaped Nigeria’s position in the regional petroleum market, helping the country reduce its dependence on imported refined fuel and move towards becoming a major exporter of petroleum products.