Dangote Refinery Posts US$4.7B Profit

NIGERIA · ENERGY · MARKETS

Nigeria’s Dangote refinery made a net profit of US$4.73 billion in the first nine months of 2026, reversing a loss from a year earlier. The unaudited figures, released on Tuesday, land in the middle of a share sale aimed at investors across Africa.

Dangote Petroleum Refinery and Petrochemicals, the Lagos plant built by Nigerian industrialist Aliko Dangote, reported a net profit of US$4.73 billion for January to September 2026. In the same nine months of 2025 it lost US$117.2 million, according to unaudited results released on Tuesday, 13 October.

For US readers, the numbers matter because the refinery has changed fuel trade around the Atlantic, shipping petrol and diesel to Europe and across Africa. The results also set the tone for a share sale worth about US$1.6 billion that now runs until 27 October.

What the Refinery Reported

Revenue rose 144% to US$22.48 billion from US$9.2 billion, ThisDay reported from the results. EBITDA, a measure of operating profit before interest, tax, depreciation and amortisation, climbed to US$5.52 billion from US$627.6 million.

The EBITDA margin widened to 24.56% from 6.83%, and operating cash flow rose to US$3.68 billion from US$364.7 million. Premium Times, BusinessDay and Nairametrics, three Nigerian outlets, reported the same profit and revenue figures.

The third quarter did most of the work. Net profit rose from US$1.82 billion at the end of June to US$4.73 billion by the end of September, which implies about US$2.9 billion in the three months to September.

Cash holdings rose to US$6.69 billion from US$809.5 million a year earlier. The company moved from net debt of US$1.73 billion in September 2025 to net cash of US$650.8 million, meaning its cash now exceeds its borrowings.

Chief executive David Bird credited higher throughput, better reliability and stronger refining margins. “Our third-quarter performance demonstrates the successful transition from commissioning and ramp-up activities to sustainable commercial operations,” he said.

Bird said the results give “a solid foundation as we progress through our IPO and execute our Vision 2030 growth strategy.” That strategy aims to raise refining capacity, widen the product range and expand distribution across Africa.

Why Profits Jumped

The plant began operations in January 2024 and completed maintenance and an expansion in February 2026. That work lifted its crude processing capacity from 650,000 to 700,000 barrels a day, according to the US Energy Information Administration (EIA).

The EIA, the statistics arm of the US Department of Energy, reported in August that Nigeria’s seaborne fuel exports have grown seven-fold since 2023. Shipments averaged 561,000 barrels a day in the second quarter of 2026, of which 350,000 barrels a day were exported.

The agency said the second surge coincided with disrupted fuel trade through the Strait of Hormuz, when supplies from other regions were constrained. Nigerian fuel exports to Europe averaged 130,000 barrels a day in the second quarter, up from 40,000 in 2025.

At home, the refinery has cut Nigeria’s dependence on imported fuel. Seaborne imports of petroleum products fell from nearly 400,000 barrels a day in 2023 to under 130,000 in the second quarter of 2026, the EIA said.

The Share Sale

The refinery is selling 4.1 billion shares at N525 (about US$0.40) each, worth about N2.15 trillion (about US$1.62 billion) at Tuesday’s close of 1,329.10 naira per US dollar. The offer opened on Monday, 14 September, and was due to close on 13 October.

With approval from the Securities and Exchange Commission, Nigeria’s capital-markets regulator, the company extended it to Tuesday, 27 October. It said the extra time would help investors across Africa open accounts and pass identity checks, and support depositary receipt programmes for cross-border buyers.

Under the revised timetable, the company aims to get the regulator’s clearance for share allotments on 17 November. Trading on the Nigerian Exchange in Lagos would start 15 business days after that, on dates the company calls indicative.

Aliko Dangote has said subscriptions already exceed the original fundraising target, ThisDay reported. The refinery has not published subscription figures, so that claim cannot be checked.

What It Means for US Readers

For US investors, the results show a business that reports in dollars but will list in Lagos, where its shares will trade in naira. The offer notice refers to “eligible investors across Africa and other jurisdictions” and does not spell out access for US residents.

For fuel markets, a large new supplier in West Africa means more competition for other refiners that ship petrol and diesel into Europe and Africa. It also gives buyers another source of fuel at a time when trade through the Strait of Hormuz has been disrupted.

For Nigeria, lower fuel imports cut the country’s need for dollars to pay for petrol and diesel. That matters to US companies operating in Nigeria, whose results depend partly on the value of the naira.

What Is Not Known

The figures are unaudited, and the full financial statements were not on the company’s websites on Wednesday morning. This report could not check details such as taxes, debt maturities or how much revenue came from exports.

It is also not clear how much of the profit came from unusually high refining margins during the Hormuz disruption. If those margins fall back, profits could shrink, which matters for investors buying at N525 (about US$0.40) a share.

Demand for the share sale and the final allotment are not yet known. The listing date also depends on regulatory steps that the company describes as indicative.

What Comes Next

The offer closes on Tuesday, 27 October, and returns are due to be collated by 3 November. The company plans to submit its allotment proposal to the regulator on 10 November.

Investors will then look for audited accounts and a dividend policy once the shares trade. The EIA says the group plans a second crude unit of 750,000 barrels a day by 2028, which would roughly double capacity.

Frequently Asked Questions

How much profit did the Dangote refinery make in 2026?

Dangote Petroleum Refinery and Petrochemicals reported a net profit of US$4.73 billion for the nine months to 30 September 2026. The unaudited figure compares with a loss of US$117.2 million a year earlier.

Why did the Dangote refinery’s profit rise?

The company credits higher refining throughput, better reliability and stronger refining margins. The US Energy Information Administration says higher Nigerian fuel shipments coincided with disrupted trade through the Strait of Hormuz.

When does the Dangote refinery IPO close?

The offer of 4.1 billion shares at N525 (about US$0.40) each now closes on Tuesday, 27 October 2026. Nigeria’s Securities and Exchange Commission approved the extension from 13 October.

Can Americans buy Dangote refinery shares?

The offer notice targets eligible investors across Africa and other jurisdictions and does not set out terms for US residents. The shares are due to trade on the Nigerian Exchange in Lagos after allotment.

How big is the Dangote refinery?

It can process 700,000 barrels of crude a day after an expansion completed in February 2026. The US Energy Information Administration says the group plans a second 750,000-barrel-a-day unit by 2028.

Sources: ThisDay, unaudited nine-month results, 14 October 2026; Premium Times, 13 October 2026; Nairametrics, 13 October 2026; BusinessDay, 14 October 2026; Dangote Petroleum Refinery and Petrochemicals, notice of extension of the offer, 12 October 2026; Dangote Petroleum Refinery and Petrochemicals, investor relations; US Energy Information Administration, Dangote refinery drives increase in petroleum shipments from Nigeria, 24 August 2026 (all accessed 14 October 2026). Naira conversions at 1,329.10 naira per US dollar, the close of Tuesday, 13 October 2026.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief