Sunoco 2003 Annual Report Download - page 8

Download and view the complete annual report

Please find page 8 of the 2003 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 74

  • 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

6
and our leverage to
refining margins on a per-share
basis is greater than most of our
peers. Fundamentals for our
Chemicals business are improving, as
industry utilization rates for phenol and
polypropylene have been steadily increas-
ing. With continued economic growth and
reasonably stable feedstock costs, we
believe Chemicals earnings should continue
to improve and become increasingly more
important to Sunoco’s earnings.
Our top priority is to deliver on what we
have projected from our recent investments
and continue our progress in getting more
from existing assets. We also have a strong
competitive position and excellent opportu-
nities for growth in each of our five busi-
nesses. The diversity of our business port-
folio and our ability and desire to fund our
growth without issuing new equity – while
returning cash to shareholders through
share repurchases and dividends – is a
clear strategic differentiation within our
sector. We continue to believe this is the
best model for Sunoco. We will look to
continue to grow the Company but will exe-
cute the strategy with capital discipline.
Our strategies and actions are designed to
create increasing and enduring value for
our shareholders – achieving a higher, less-
volatile share price. We have had some
notable success in this regard over the past
few years and are determined to continually
strive for “higher-highs” and “higher-lows” in
Sunoco’s share price across our business
cycles.
A special thanks to our employees whose
numbers have increased from 14,000 at
the start of 2003 to over 15,000 today. This
very special group of people is undoubtedly
responsible for the Company’s success in
recent years and we are all proud to be
part of Sunoco. Our Board of Directors
has been outstanding in its tireless effort to
keep Sunoco in the forefront of corporate
governance and integrity while questioning
yet being supportive of our strategies to
create long-term value for our shareholders.
The past year was a successful period for
our investors, our employees and other
stakeholders and we have new momentum
as we enter 2004. Sunoco is on the move
and our constituents have come to expect
it will continue. We are determined not to
disappoint them.
JOHN G. DROSDICK
Chairman, Chief Executive
Officer and President