After the most successful year in the company’s history, Valero Energy Corporation (NYSE: VLO) began 2005 by being ranked as the top performer among the nation’s largest companies and being named as one of the top U.S. employers. Valero ranks No. 1 on Forbes Magazine’s annual listing of the “Platinum 400—the Best Big Companies in America,” which recognizes the company’s superior financial performance and shareholder return in 2004. The company also continued its climb as one of the nation’s best employers, rising to No. 23 on Fortune Magazine’s list of the “100 Best Companies to Work For,” up from its No. 32 ranking in 2004. And, Fortune ranked Valero No. 3 among the large employers making the list this year.
Forbes also ranked Valero among the “Best-Managed Companies in America” in its January 10, 2005 issue. And, based on the company’s overall performance and leadership in the industry, Valero was selected as the “Oil Company of the Year” from oil companies around the world as part of the Platt’s Global Energy Awards program at the end of 2004. Past winners for the Oil Company of the Year award have included ExxonMobil, which won last year's award, BP Amoco and Suncor.
“None of our success would be possible without the hard work and dedication of our employees,” said Bill Greehey, chairman and CEO of Valero. “Thanks to them, 2004 was a record year in every way, and, we’re positioned for even greater success going forward. We’re proud to be a leader in our industry, and these most recent honors show that we are also a leader among all U.S. businesses!”
The Forbes “Platinum 400—America’s Best Big Companies” Ranking
According to Forbes, Platinum 400 companies all have at least $1 billion in revenue and high rankings for corporate practices as well as long- and short-term sales and earnings growth. The companies are then ranked according to stock market performance, and Valero’s 117 percent increase in its stock price as of Nov. 30 outperformed all of the other companies, and was 16 percent higher than the next highest company. Calling Valero the year's "biggest winner," Forbes recognized the company for doubling its stock price to $47 per share (which would be the equivalent of $94 per share before the company’s stock split in October 2004) and increasing its earnings by an estimated 134 percent. The listing is available online at http://www.forbes.com/home/personalfinance/2004/12/31/cz_jy_1231sf.html
“It’s amazing that we have grown from a company with a single refinery in 1997 to 15 refineries today with operations across the United States, Canada and the Caribbean along with 4,500 retail sites in those regions and an ownership interest in a significant pipeline and terminals partnership that has a market capitalization of $1.25 billion. Our financial and operational performance the last few years really shows that our strategy to significantly grow and invest in our refining and marketing business was the right strategy for our company and our shareholders,” said Greehey. “We are truly in the right business at the right time, and industry fundamentals have never looked better, so we expect an even better year in 2005 and beyond.”
The Fortune “100 Best Companies to Work For” Ranking
Valero was once again the only energy company and the only San Antonio-based company to make Fortune’s “100 Best Companies to Work For” listing, and the company’s ranking has risen every year it has been eligible since it first made the list at No. 93 in 1999. (Fortune rules preclude a company from consideration for one year after a major acquisition and Valero acquired Ultramar Diamond Shamrock in 2001.)
As in years past, two-thirds of the scoring for the award is based on confidential employee surveys conducted by the Great Place to Work Institute. In addition to the employee survey, the scoring is based on an evaluation of the company’s benefits and practices. This year, Fortune also included separate lists for companies in the “large” (more than 10,000 employees), “mid-sized” (2,500 to 10,000 employees), and “small” (less than 2,500 employees) categories. Valero ranked third out of 37 companies in the large companies category.
“The fact that the ranking is primarily based on confidential employee surveys is what always makes this ranking so special because it shows that our employees are happy with their jobs,” said Greehey. “Each and every employee plays a role in our success, and we work hard to make sure that they are rewarded for their efforts. We may be a large company, but when it comes to our employees, we’re more like a large family.”
Some of the benefits that helped Valero earn a place on the list include Valero’s commitment to employee safety, an innovative corporate wellness plan, employee recognition programs and alternative work schedules. Valero is one of the few U.S. companies to provide both a pension and 401K retirement savings. In addition, Valero has an all-employee bonus, medical/dental insurance, disability insurance, life insurance and flexible spending accounts. The company also has an extensive community service program that gives employees significant opportunities to participate in community initiatives on work time as well as volunteer time.
The “100 Best Companies to Work For” list will appear in FORTUNE’s January 17 issue and is currently online at www.fortune.com.
About Valero
Valero Energy Corporation is a Fortune 500 company based in San Antonio, with approximately 20,000 employees and annual revenues of more than $55 billion. The company owns and operates 15 refineries throughout the United States, Canada and the Caribbean. Valero's refineries have a combined throughput capacity of approximately 2.4 million barrels per day, which represents approximately 12 percent of the total U.S. refining capacity. Valero is also one of the nation's largest retail operators with more than 4,500 retail and wholesale branded outlets in the United States, Canada and the Caribbean under various brand names including Diamond Shamrock, Shamrock, Ultramar, Valero and Beacon. For more information, please visit www.valero.com.