Sunoco 2006 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2006 Sunoco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 82

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82

20 thousand barrels per day. Both of these projects are expected to be completed in the
first half of 2007.
• During 2006, the Company continued its Retail Portfolio Management program which
selectively reduced its invested capital in Company-owned or leased sites, while retain-
ing most of the gasoline sales volumes attributable to the divested sites. During the
2004-2006 period, the Company generated $189 million of divestment proceeds re-
lated to the sale of 338 sites.
• In the first quarter of 2007, limited operations are expected to commence at a
1.7 million tons-per-year cokemaking facility and associated cogeneration power plant
in Vitória, Brazil, with full production expected in mid-2007. Sun Coke will be the
operator of the cokemaking facility. Sun Coke currently has a one percent interest in
this venture and expects to invest an additional $35 million in the venture during
2007.
• During February 2007, Sunoco entered into an agreement with two customers under
which the Company will build, own and operate a $230 million cokemaking facility at
its Haverhill site. This facility, which represents the second 550,000 tons-per-year
plant at this site, is expected to be operational in the second half of 2008.
• On August 1, 2005, a two-for-one split of Sunoco’s common stock was effected in the
form of a common stock dividend. (Share and per-share data for all periods reflect the
effect of the stock split.)
• Effective with the second quarter of 2007, Sunoco increased the quarterly dividend on
its common stock to $.275 per share ($1.10 per year), following increases from $.20 per
share to $.25 per share in the second quarter of 2006, from $.15 per share to $.20 per
share in the second quarter of 2005 and from $.1375 per share to $.15 per share in the
third quarter of 2004.
• During 2006, 2005 and 2004, the Company repurchased 12.2, 6.7 and 15.9 million
shares, respectively, of its outstanding common stock for $871, $435 and $568 million,
respectively. In September 2006 and July 2006, the Company announced that its
Board of Directors approved additional share repurchase authorizations totaling $1 bil-
lion and $500 million, respectively. At December 31, 2006, the Company had a re-
maining authorization from its Board to repurchase up to $943 million of Company
common stock. Sunoco expects to continue to repurchase Company common stock
from time to time depending on prevailing market conditions and available cash.
For additional information regarding the above actions, see Notes 2, 3, 12, 15 and 16 to
the consolidated financial statements.
9