Valero 2011 Annual Report Download - page 6

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6 | VALERO ENERGY CORPORATION
2011 was an excellent year for
Valero, as we achieved our best
annual earnings performance
since 2008 due to improved operations
and better industry margins. We
reported an operating profit of $3.68
billion and net income of
$2.1 billion, or $3.69 per share.
We shared that strong
financial success with you.
rough stock buybacks in
2011, we reduced our share
count by 2 percent, and
we tripled the annual dividend rate
to 60 cents per share, returning our
dividend to the pre-“Great Recession”
level. Our goal is to return more cash
to shareholders and have one of the
highest cash yields among our peers.
Your company finished 2011
financially strong, having a cash
balance of approximately $1.0
billion, additional liquidity of $4.5
billion, a debt-to-capitalization
ratio of just 29 percent and an
investment-grade bond rating.
We paid off approximately $780
million of debt last year.
As always, personal safety continues
to be our top priority. In 2011,
our refining system’s average total
employee recordable-incident rate
(TRIR) of 0.62 incidents per 200,000
working hours was second-lowest
in our history. Our contractor TRIR
was also 0.62. Valero has reduced
injury rates by 46 percent since 2004,
and though our goal is zero for both
employees and contractors, these are
excellent results. Our Houston, ree
Rivers and Wilmington refineries, and
our Corpus Christi Asphalt Terminal,
were re-approved as Star Sites in
the Voluntary Protection Programs
of the federal Occupational Safety
and Health Administration
and the California Division
of Occupational Safety and
Health. Valero has nine
U.S. refineries that have
achieved a prestigious VPP
Star – representing about
one-third of all refinery Star
Sites nationally. Also, our Houston
refinery received the American Fuel
and Petrochemical Manufacturers
(AFPM) Distinguished Safety Award
for 2011, the second time a Valero
refinery has won this industry honor.
In process safety we made
substantial progress through intense
assessments of our mechanical
integrity, electrical and rotating
We achieved our best annual
earnings performance since
2008 due to improved operations
and better industry margins.
A LETTER TO OUR
STOCKHOLDERS
A LETTER TO OUR
STOCKHOLDERS
6 | VALERO ENERGY CORPORATION