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Sunoco has long maintained that HES excellence is the foundation upon which our financial success is built, and 2005 showed the wisdom of that philosophy. We achieved our best-ever health, environment and safety (HES) performance. And from a financial perspective, 2005 was the best year in the best three-year period since Sunoco became a purely downstream petroleum manufacturer. Structural improvements in the refining industry were an important factor in our financial success. More importantly, we continue to improve our Refining and Supply operations. Our 2005 refinery throughput and production reached record levels, with crude unit utilization at 98% and conversion unit utilization at 101% of capacity. We produced 8 million more barrels of product in 2005 than we did in 2004, and we did it with fewer safety and environmental incidents. We achieved “best-ever” employee safety performance in Refining and Supply, Retail Marketing, and contractor safety improved at our manufacturing facilities. We also had our best ever air and water permit performance. Although we continue to recover the overwhelming majority of any product we spill, we remain dissatisfied with the number of spills we experience. Although Refining and Supply has led our financial and HES success, our other businesses – Retail Marketing, Chemicals, Coke and Logistics - also continue to improve their operations and provide a base of steady earnings and cash flow. Over the past three years, these business units have averaged $213 million in total yearly earnings while also improving overall HES performance. Sunoco’s focus on Safe, Reliable, Environmentally Sound Operations is working. I was pleased to recognize two facilities for outstanding HES performance in 2005. The Chairman’s Award for HES Excellence is highly sought after, but I have always reserved the right to give no award if no facility has achieved truly outstanding HES performance. This year, both the Marcus Hook Refinery and the La Porte Chemical Plant were honored by the entire Board of Directors, and I encourage you to read about their achievements. I also encourage you to review this report in its entirety. With few exceptions, the men and women of Sunoco improved every aspect of their HES performance while meeting the needs of a growing marketplace. As proud as I am of the achievements of our employees, I also am aware that it is not enough. Our performance today becomes the baseline for tomorrow’s targets. Sunoco is committed to continuous HES improvement, and I am confident we’re on the right path.
John G. Drosdick |
HES Glossary
Conversion Table
Summary Report
VP HES Regulatory Affairs Letter
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