Dangote Refinery swings to N2.55trn profit in six months

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By Udeme Akpan

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The Dangote Petroleum Refinery and Petrochemicals posted a profit after tax of about N2.55 trillion ($1.82 billion) in the first half of 2026, marking a sharp turnaround in the financial performance of the 700,000 barrels-per-day facility.

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The results, contained in the prospectus for the refinery’s planned Initial Public Offering, IPO, showed revenue of about N19.47 trillion ($13.91 billion), based on an exchange rate of N1,400 to the dollar.

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The refinery also recorded earnings before interest, tax, depreciation and amortisation, EBITDA, of $2.60 billion, equivalent to about N3.64 trillion during the six-month period.

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Average utilisation rose to 83.6 per cent in the first half of the year, up from about 45 per cent at the beginning of 2026.

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The facility reached full crude distillation capacity in the second quarter following improvements to its residual fluid catalytic cracker and a shift away from lower-value reduced crude oil production.

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Its gross refining margin also strengthened to $24.50 per barrel during the period, compared with $13.70 in 2025 and $10.70 in 2024.

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The stronger performance comes ahead of the refinery’s planned IPO, through which it seeks to raise about N2.26 trillion at an offer price of N525 per share from an initial 4.1 billion ordinary shares.

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The offer, expected to run from September 14 to October 13, is being positioned as a “people’s IPO”, with Nigerians, Africans and members of the diaspora expected to have an opportunity to acquire shares in the refinery.

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Chief Executive Officer of Dangote Refinery, David Bird, said the improved operating performance had strengthened the financing outlook for the company’s expansion programme.

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“We’re at full capacity, 700,000 barrels per day, we are enjoying those upswings, and yes it has fundamentally changed the funding premise of this Vision 2030,” Bird said.

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The company plans to invest about $14.3 billion to expand its processing capacity to 1.4 million barrels per day by 2029, effectively doubling current capacity.

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Bird said the expansion would include additional refining and petrochemical units, enabling the facility to produce different specifications of diesel and deepen import substitution.

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Meanwhile, the refinery has expanded its export footprint, supplying refined products including jet fuel and diesel to international markets.

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It exported jet fuel to the United States for the first time this year and was identified by S&P Global Energy as the world’s largest single exporter of jet fuel during April and May.

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Bird said global fuel markets could remain tight as damaged refineries recover and countries rebuild inventories following supply disruptions linked to the Middle East conflict.

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“We went in at high refinery utilisation rates, and there’s been deferred maintenance and damages to Middle East refineries. That’s just to meet current demand. Plus inventories have to be rebuilt,” he said.

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Dangote Petroleum Refinery said it has a current crude distillation capacity of 700,000 barrels per day, with an expansion pathway to 1.4 million barrels per day, and produces Euro V-standard PMS, AGO and Jet A-1, as well as petrochemical products.

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The company added: “We are committed to producing high-quality fuels and petrochemical products through innovation, operational excellence and responsible practices — powering industries, communities and economies.”

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Built at an estimated cost of $20 billion, the Dangote Refinery began operations in 2024 and has since emerged as a major supplier of refined petroleum products to Nigeria and international markets.

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