Dangote Petroleum Refinery reported a 4.73 billion dollar profit for the first nine months, reversing a loss a year earlier. Revenue more than doubled as crude processing and refining margins improved. The Nigerian refinery is seeking 1.6 billion dollars through its share offering, with subscriptions extended to 27 October. Some proceeds are intended to finance a planned capacity expansion.
Dangote Petroleum Refinery, Nigeria’s oil-refining business, reported net profit of 4.73 billion dollars for the first nine months, compared with a 117.2 million dollar loss a year earlier. Revenue reached 22.48 billion dollars. The company’s results cover the period through September rather than the third quarter alone. The figures were released during its initial public share offering.[1], [2]
Revenue had stood at 9.19 billion dollars a year earlier. Earnings before interest, taxes, depreciation and amortisation increased from 627.6 million dollars to 5.52 billion dollars. The refinery processed more crude and benefited from stronger refining margins. OilPrice links those margins partly to Middle Eastern fuel-supply disruptions during the Iran war and describes jet-fuel exports to Western Europe. Operating cash flow increased from 364.7 million dollars to 3.68 billion dollars, while cash holdings reached 6.69 billion dollars.[1]
The offering seeks to raise 1.6 billion dollars at a valuation of about 47 billion dollars. The subscription period, originally due to end on 13 October, was extended to 27 October after heavy demand strained some Nigerian investment platforms. Part of the proceeds is intended for expansion. Dangote plans to double current capacity of 700,000 barrels a day to 1.4 million barrels a day by 2029.[1]
