Valero 2004 Annual Report Download - page 6
Download and view the complete annual report
Please find page 6 of the 2004 Valero 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.4
Va l e r o E n e r g y C o r p or a t i o n
s u m m a r y a n n u a l r e p o r t
4
Va l e r o E n e r g y C o r p or a t i o n
s u m m a r y a n n u a l r e p o r t
Valero’sshareholdershavebenefitedfromtotal
shareholderreturnof380percentoverthelast
fiveyears–comparedtothe11percentlossofthe
S&P500Indexoverthesametimeperiod!
Wearetrulyintherightbusinesswiththeright
strategyandtherightassetsattherighttime.
Andjustasimportantly,Valeroalsohastheright
culture.Wehavealwaysbelievedouremployees
areourNo.1assetandthatifwetakecareofour
employees,theywilltakecareofthecompany,the
shareholdersandthecommunitiesinwhichwelive
andoperate.
Andtheydo!AtValero,ouremployeesarethebestin
theindustry.Theyaretalented,hard-workingand
dedicatedtoValero’ssuccessineveryway.
So,Iguessit’snotsurprisingthat2004wasarecord
yearforValeroineveryrespect.
ANOTHERRECORDYEAR
Wegeneratedarecord$55billioninrevenues,which
wereup44percentover2003.Basedonthecurrent
Fortune500ranking,ourrevenueswouldplaceValero
amongthetop20largestpubliclytradedcompanies
intheUnitedStatestoday.
Betteryet,ValerorankedNo.1onForbesmagazine’s
listofAmerica’sBestBigCompaniesforour2004
earningsgrowthandshareholderreturn!
Netincomewasarecord$1.8billion,or$6.53per
share,whichisnearlytriplethenetincomeof$622
million,or$2.55pershare,thatweearnedin2003.
In2004alone,Valero’stotalshareholderreturnwasan
incredible98percent.And,becauseoftheoutstanding
performanceofourstocklastyear,wehadthefirst
stocksplitinValero’shistory!
Wealsoincreasedourdividendby38percentand
endedtheyearwithaverystrongbalancesheetwith
ourdebt-to-capitalizationratiodowntoabout30
percent–despiteourmanyacquisitionsandstrategic
investmentstheselastfewyears!
2004wasalsoayearofrecord
recognitionforValero.In
additiontonamingusThe
BestBigCompanyinAmerica,
Forbesmagazinealsolisted
ValeroasoneofAmerica’s
BestManagedCompanies.
And,FortuneMagazinenamed
ValeroasoneofAmerica’sMost
AdmiredCompaniesandrankedValerothirdamong
America’slargestcompaniesinitsannuallistingof
“The100BestCompaniestoWorkFor.”Fortune
MagazinealsoselectedValerotoreceivetheEmployee
PrideAward–oneofonlyfivespecialawardsgiven
tothetopemployersonitsprestigiousranking.
Valerowasalsonamed“OilCompanyoftheYear”in
thePlattsGlobalEnergyAwardsprogramin2004,
andbecameonlythesecondcompanyinhistoryto
receivetheSpiritofAmericaAward–UnitedWay’s
highesthonor–forasecondtime.
ItisatremendoustributetoValero’suniqueculture
andastrongtestamenttoitssuccess,tohavebeen
honoredasanindustryleader,atopemployer,aleader
incommunityserviceandaleaderinshareholder
returnin2004.Itclearlydemonstratesthatacompany
canachievegreatsuccesswhilelookingoutforallof
itsstakeholders.And,everyoneatValerotakesgreat
prideinbeingapartofsuchasharingandcaring
culture.Wefirmlybelieveitisthecornerstoneof
allourpastandfuturesuccess.And,aslongas
wemaintainourspecialculture,Ibelievewewill
continuetohaveaverybrightfuture.
COMPARISONOF5-YEAR
CUMULATIVETOTALRETURN
VALEROCOMMONSTOCK
PEERGROUP
S&P500