Dangote Refinery Assures Investors on Profitability Amid Crude Fluctuations

Devakumar Edwin, Vice President of Dangote Industries Limited, stated that the Dangote Petroleum Refinery's profitability will not be directly affected by fluctuations in crude oil prices following the US-Iran war. During a media tour, he explained that the refinery's returns are based on refining margins rather than the crude oil price itself.

Edwin likened the situation to a trader maintaining a profit margin regardless of import prices. He noted that while the ongoing geopolitical crisis could temporarily increase profitability due to supply disruptions, this is not a result of higher crude prices but rather a shortage in the market.

He mentioned that some Middle Eastern refineries are unable to operate at full capacity, affecting product supply. Additionally, he assured investors that dividends from the refinery would be paid in foreign exchange, countering concerns about potential declines in share value after listing.