Dangote Petroleum Refinery and Petrochemicals FZE has crossed a major financial milestone, swinging to a $1.82 billion after-tax profit in the first half of 2026 as revenue more than doubled, providing the clearest financial evidence yet of the Lekki refinery’s transition from commissioning and ramp-up into large-scale commercial operations.
The refinery generated ₦19.13 trillion ($13.9 billion) in revenue in the six months to June 2026, compared with ₦8.63 trillion ($5.56 billion) in the corresponding period of 2025, representing growth of 121.5 percent in naira terms and 149.9 percent in dollar terms.
The financial disclosures contained in the company’s IPO prospectus show the scale of the operating inflection. Management said the refinery transitioned to stable, full-capacity production across all processing units from March 2026, with performance testing reaching 700,000 barrels per day in June.
That ramp-up has fundamentally altered the economics of the plant, with gross profit rising more than 15-fold and the gross margin expanding from barely 3 percent to almost 18 percent.
Dangote Refinery’s cost of sales rose to ₦15.7 trillion ($11.41 billion) in H1 2026 from ₦8.4 trillion ($5.41 billion), an increase of 86.6 percent in naira terms and 110.6 percent in dollar terms.
Gross profit jumped to ₦3.43 trillion ($2.49 billion) from just ₦225.2 billion ($145 million) a year earlier, while gross margin expanded from 2.6 percent to nearly 18 percent.
Profit before tax reached ₦2.89 trillion ($2.10 billion) in H1 2026, reversing a ₦437.9 billion ($282.1 million) pre-tax loss recorded in H1 2025.
After recognising its first income-tax expense of ₦392.8 billion ($285 million) under Nigeria’s minimum effective tax rate regime, the company reported net profit of about ₦2.5 trillion…
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Read Full Article by Onome Amuge at businessamlive.com
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