Dangote Refinery Posts $4.73B Profit as IPO Demand Surges

BREAKING NEWSOctober 13, 2026 at 3:19 PM UTC

TLDR

Dangote Petroleum Refinery reports significant $4.73 billion net profit in first 9 months of 2026, with revenue more than doubling to $22.48 billion.
Refinery moving from net debt to a net cash position, ending September with about $6.69 billion in cash.
Dangote Refinery aims to raise $1.6 billion through IPO, offering 4.1 billion shares with high demand exceeding available shares.

Dangote Petroleum Refinery swung to a $4.73 billion net profit in the first 9 months of 2026 as Africa’s largest oil-processing facility raised output and refining margins improved. The Lagos-based company reported a $117.2 million loss in the same period a year earlier. Revenue more than doubled to $22.48 billion from $9.19 billion as the refinery processed as much as 700,000 barrels of crude a day.

Earnings before interest, tax, depreciation and amortisation rose to $5.52 billion from $627.6 million. Operating cash flow increased to $3.68 billion from $364.7 million. The refinery ended September with about $6.69 billion in cash and moved from net debt of $1.73 billion a year earlier to a net cash position of about $650.8 million.

The results come as Dangote Refinery seeks to raise about $1.6 billion through an initial public offering that could become Africa’s largest share sale. The company is offering 4.1 billion shares to investors. Aliko Dangote said demand for the offer has reached 3 to 4 times the amount being raised, pointing to orders that could exceed the shares available.

The application period has been extended to October 27 from October 13. Chief Executive Officer David Bird said the company had received interest from investors across Africa and wanted to give more markets time to participate. The refinery is seeking to broaden ownership of an asset that has changed Nigeria’s fuel market since production began and reduced the country’s reliance on imported refined products.

The earnings give investors more data to assess the refinery before its planned listing. The increase in revenue and cash generation reflects higher processing volumes and refining margins, but future earnings will remain tied to crude costs, fuel prices, plant utilisation and financing needs. Investors will also have to assess how much capital the refinery will require for planned expansion and whether the earnings recorded in 2026 can be maintained after the current ramp-up period.

Foreign investor? No BVN. No Nigerian bank account.

You can invest in the Dangote Refinery IPO through Daba. Click here to submit your application→ dabafinance.com/register

Key Takeaways

The latest numbers change the financial picture investors are using to assess the Dangote Refinery IPO. The company has moved from a loss to $4.73 billion of profit in 9 months while revenue reached $22.48 billion and EBITDA rose to $5.52 billion. That implies an EBITDA margin of about 24.6% and a net profit margin of about 21%, levels that help explain demand for an offer Dangote says is already covered several times. Cash generation is also important. Operating cash flow of $3.68 billion and a move from $1.73 billion of net debt to $650.8 million of net cash suggest the refinery has strengthened its balance sheet as production increased. That reduces one of the concerns attached to a project that required large amounts of capital before reaching full operations. The issue for investors is how much of the current performance can be repeated. Refining is a cyclical business, and margins can change as crude prices, product prices and regional fuel supply move. The refinery may also require more capital as it expands capacity and related petrochemical operations. The IPO therefore asks investors to separate the gains from reaching 700,000 barrels a day from the earnings the business can sustain over a full cycle. Demand of 3 to 4 times the offer size suggests investors are focused on the scale of the asset and its cash generation, but the market price after listing will depend on whether those results continue once the refinery moves beyond its ramp-up phase.

Finance