Nigerian billionaire Aliko Dangote's refinery makes $4.7 billion profit in nine months

The oil refinery owned by Nigerian billionaire Aliko Dangote made a net profit of $4.73 billion in the first nine months of 2026, reversing a loss of $117.2 million a year earlier, as higher output and stronger margins lifted Africa's largest refinery in the middle of its record share sale.

Revenue at Dangote Petroleum Refinery and Petrochemicals FZE rose 144% to $22.5 billion in the nine months through Sept. 30, from $9.2 billion in the same period of 2025, according to unaudited results released in Lagos on Tuesday. Earnings before interest, taxes, depreciation and amortization climbed to $5.52 billion from $627.6 million, nearly nine times the year-earlier figure.

"Our third-quarter performance demonstrates the successful transition from commissioning and ramp-up activities to sustainable commercial operations," Chief Executive Officer David Bird said in the statement. He attributed the improvement to "higher throughput, improved operational reliability and stronger gross refining margins."

The figures are the first detailed look at the refinery's earnings since it opened its initial public offering on Sept. 14. The offer of 4.1 billion shares at 525 naira each, worth about 2.15 trillion naira or $1.6 billion, is the largest ever attempted in Africa and now closes on Oct. 27 after the Securities and Exchange Commission approved a two-week extension.

A stronger third quarter

The results show the business gathering pace as the year went on. Revenue rose from $13.91 billion at the end of June to $22.48 billion at the end of September, which means the refinery took in about $8.57 billion in the third quarter alone. Net profit for the quarter was about $2.9 billion, more than the $1.82 billion it earned in the whole of the first half. EBITDA for the three months was about $2.92 billion.

The refinery's EBITDA margin widened to 24.56% for the nine months from 6.83% a year earlier, a sign that each barrel it processes is earning far more than it did during the plant's ramp-up.

Cash flow followed. Operating cash flow rose more than tenfold to $3.68 billion from $364.7 million, and cash balances climbed to $6.69 billion from $809.5 million a year earlier. The company moved from net debt of $1.73 billion in September 2025 to net cash of $650.8 million at the end of September 2026, meaning its cash now exceeds its borrowings.

What it means for the IPO

The numbers give investors a clearer basis for judging the price of the share sale. The offer values the refinery at about $47 billion, according to Reuters calculations. If the refinery keeps earning at its nine-month pace, its profit for the full year would be about $6.3 billion, a Billionaires.Africa calculation, which would put the IPO price at roughly 7.5 times annual earnings. The third quarter alone, if repeated for a full year, would imply annual profit of more than $11 billion.

Dangote said on Oct. 12 that the offer had already drawn orders worth "more than three or four times" the amount the company set out to raise, and that the extension was meant to bring in more investors from other African countries rather than more money. The company has not published subscription figures.

"These results reflect the strength of our integrated business model and provide a solid foundation as we progress through our IPO and execute our Vision 2030 growth strategy," Bird said.

Dangote and his affiliates own about 80.7% of the refinery. State oil company NNPC Ltd. holds 6.8% and Greenview International holds 6.5%. The share sale represents about 3.4% of the company.

The road to 1.4 million barrels

The refinery in the Lekki Free Zone near Lagos cost about $20 billion and began producing fuel in 2024. It was designed to process 650,000 barrels of crude a day and now runs at about 700,000 barrels a day. Dangote plans to double capacity to 1.4 million barrels a day by 2029 through a $14.3 billion expansion that the IPO proceeds will help fund.

"With our expansion programme already underway, we remain focused on increasing refining capacity and broadening our product portfolio," Bird said.

The refinery's turnaround has added to the fortune of Dangote, Africa's richest person, whom Forbes valued at $51.7 billion on Oct. 10. Most of his wealth has long come from his majority stake in Dangote Cement, the continent's biggest cement maker. The share sale will put a public market value on his second major business for the first time.

The refinery still faces disputes at home. It is seeking permission to appeal a Federal High Court ruling that ordered Nigeria's downstream regulator to keep issuing fuel import licences to three rival marketers, and Nigeria's oil minister has acknowledged that it cannot get enough Nigerian crude to meet its needs.