Dangote Swings to $4.7 Billion Profit Ahead of Africa’s Biggest IPO

Nigeria's Dangote refinery has transformed itself from a money-losing entity to a $4.73 billion profit-making machine in just one year, as it prepares to offer $1.6 billion in what will be Africa's largest Initial Public Offering (IPO). The Dangote Petroleum Refinery reported a net profit of $4.73 billion for the first nine months of 2026, a stark contrast to a $117.2 million loss in the same period last year.

Revenue more than doubled to $22.48 billion from $9.19 billion, with EBITDA soaring to $5.52 billion from a modest $627.6 million. The refinery processed more crude and captured higher refining margins, contributing to the increased profits. The Iran war disrupted Middle Eastern refining and fuel exports, leading to higher product margins, particularly for diesel and jet fuel.

Dangote capitalized on these shortages by increasing exports, including jet fuel shipments to Western Europe. Operating cash flow reached $3.68 billion through September, up from $364.7 million a year earlier, with cash holdings soaring to $6.69 billion. The refinery's balance sheet has improved dramatically, moving from $1.73 billion in net debt a year ago to $650.8 million in net cash.

The IPO aims to raise $1.6 billion, valuing the refinery at around $47 billion. Extensions to the subscription period due to heavy investor demand have pushed the deadline to October 27. The funds raised will be used partly for Dangote's expansion plans, aiming to double refining capacity to 1.4 million barrels per day by 2029, making the Lagos complex one of the world's largest refineries.