Dangote Refinery’s N19.13trn H1 Revenue Strengthens Case for Landmark IPO
Dangote Petroleum Refinery has recorded a sharp improvement in financial performance in the first half of 2026, posting N19.13 trillion in revenue as the company prepares for what could become one of Africa’s largest initial public offerings.
The refinery’s revenue increased by 121.46 percent from the N8.64 trillion recorded in the corresponding period of 2025, reflecting stronger production, increased sales volumes and higher realised prices across major petroleum products.
The improved performance also extended to profitability. Gross profit rose to N3.43 trillion in the six-month period, compared with N225.2 billion a year earlier, while net profit stood at $1.82 billion. Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached $2.60 billion.
The stronger numbers come as the refinery moves towards more stable operations. Production across its processing units became increasingly stable from March, with the facility recording performance-testing rates of up to 700,000 barrels per day in June.
Higher product sales drive growth
The refinery’s financial performance was supported by significant increases in the volume and value of petroleum products sold during the period.
Petrol sales rose to approximately 6.06 million metric tonnes, almost double the 3.09 million tonnes recorded in the first half of 2025. The average realised price also increased to about $975 per tonne from $723.
Diesel sales climbed to 2.86 million tonnes from 1.76 million tonnes, while the average realised price increased from $688 to $1,225 per tonne.
Jet fuel sales also expanded, reaching about 3.02 million tonnes compared with 2.06 million tonnes in the same period last year. The average realised price increased from $663 to $1,092 per tonne.
The combination of increased utilisation, higher sales volumes and stronger product prices has significantly changed the financial profile of the refinery, which previously remained heavily focused on ramping up commercial production.
N2.15trn IPO
The strong half-year results come ahead of the refinery’s planned listing on the Nigerian Exchange.
Dangote Refinery plans to offer 4.1 billion ordinary shares at N525 per share, with the offer expected to run from September 14 to October 13, 2026. The company is targeting approximately N2.15 trillion from the offering.
At the offer price, the refinery would have a post-listing market capitalisation of about N65.22 trillion. Its pre-listing valuation is estimated at N63.07 trillion.
The scale of the transaction is expected to have a significant impact on the Nigerian capital market by introducing one of the country’s largest corporate entities to public investors.
A Pan-African Refinery Investment SPV, incorporated in Mauritius, has already committed to subscribe for up to $400 million of the offer, equivalent to approximately 1.04 billion shares or 25.34 percent of the offer.
Expansion remains a key priority
The IPO proceeds are expected to be directed largely towards expanding the refinery and petrochemical business.
After estimated offer expenses of N41.49 billion, the company expects to have approximately N2.11 trillion available for capital expenditure. The funds will support expansion of its refining and petrochemical capacity and help position the business to meet rising demand for petroleum and petrochemical products.
For investors, the strong H1 performance provides a significant earnings track record ahead of the IPO. However, the sustainability of the results will remain important, particularly as investors assess how much of the growth has come from higher production volumes and how much has been supported by stronger commodity prices.
The planned listing is therefore more than a capital-raising exercise. It will give investors an opportunity to participate directly in one of Nigeria’s most significant industrial assets while potentially deepening liquidity and expanding the range of investable companies on the Nigerian Exchange.
With its production ramp-up translating into substantial revenue and profit, Dangote Refinery is entering the capital market with a considerably stronger financial story than it had during its earlier development phase.
Source: BusinessDay source article
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