PHILADELPHIA, March 3 /PRNewswire-FirstCall/ -- Sunoco, Inc. (NYSE: SUN)
announced today that its Board of Directors has approved an increase in the
quarterly dividend to a new rate of 40 cents per share and has authorized the
repurchase of an additional $500 million of Sunoco shares.
(Photo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
The quarterly dividend will increase 10 cents per share, or about
33 percent. The dividend is payable on June 10, 2005 to shareholders of
record at the close of business on May 10, 2005. The increase brings the
annualized dividend rate on the Company's common stock to $1.60 per share.
To date in 2005, Sunoco has repurchased 600,000 shares (for approximately
$57 million) and since January 1, 2000 has repurchased 27.4 million shares
(for approximately $1.3 billion). Including remaining authorization under the
previous $500 million program approved in September 2004, the Company has
$674 million of outstanding share repurchase authorization. Sunoco had
68.9 million shares outstanding as of March 2, 2005.
"These actions reflect our continued confidence in the outlook for the
Company and are core to our strategy to provide value to our shareholders,"
said Sunoco Chairman and Chief Executive Officer John G. Drosdick. "The
dividend increase is the third in less than two years and has brought our
annual dividend from $1.00 per share to $1.60 per share. We have been
actively repurchasing shares for some time and have reduced our shares
outstanding by 23 percent over the past five years. We have also grown and
upgraded our asset base, which has resulted in a demonstrated increase in
Sunoco's earnings power. Our balance sheet is strong and the market outlook
for our businesses remains positive.
"As we look ahead, we have confidence in our ability to continue to grow
the Company, return cash to our shareholders, and maintain a strong balance
sheet. This remains our strategy for providing the best long-term return to
Sunoco shareholders."
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer
and marketer of petroleum and petrochemical products. With 900,000 barrels
per day of refining capacity, approximately 4,800 retail sites selling
gasoline and convenience items, over 4,300 miles of crude oil and refined
product owned and operated pipelines and 38 product terminals, Sunoco is one
of the largest independent refiner-marketers in the United States. Sunoco is
a significant manufacturer of petrochemicals with annual sales of
approximately five billion pounds, largely chemical intermediates used in the
fibers, resins and specialties markets. Utilizing a unique, patented
technology, Sunoco also manufactures approximately two million tons annually
of high-quality metallurgical-grade coke for use in the steel industry.
Those statements made in this release that are not historical facts are
forward-looking statements intended to be covered by the safe harbor
provisions of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although Sunoco believes that the
assumptions underlying these statements are reasonable, investors are
cautioned that such forward-looking statements are inherently uncertain and
necessarily involve risks that may affect Sunoco's business prospects and
performance causing actual results to differ from those discussed in the
foregoing release. Such risks and uncertainties include, by way of example
and not of limitation: general business and economic conditions; competitive
products and pricing; effects of weather conditions and natural disasters on
the Company's operating facilities and on product supply and demand; changes
in refining, chemical and other product margins; variation in petroleum-based
commodity prices and availability of crude oil and feedstock supply or
transportation; effects of transportation disruptions; changes in the price
differentials between light-sweet and heavy-sour crude oils; fluctuations in
supply of feedstocks and demand for products manufactured; changes in product
specifications; availability and pricing of oxygenates; phase-outs or
restrictions on the use of MTBE; changes in operating conditions and costs;
changes in the expected level of environmental capital, operating or
remediation expenditures; age of, and changes in, the reliability and
efficiency of the Company's or a third party's operating facilities; potential
equipment malfunction; potential labor relations problems; the legislative and
regulatory environment; ability to conduct business effectively in the event
of an information systems failure; ability to identify acquisitions, execute
them under favorable terms and integrate them into the Company's existing
businesses; ability to enter into joint ventures and other arrangements with
favorable terms; plant construction/repair delays; nonperformance by major
customers, suppliers or other business partners; changes in financial markets
impacting pension expense and funding requirements; political and economic
conditions, including the impact of potential terrorist acts and international
hostilities; and changes in the status of, or initiation of new, litigation.
These and other applicable risks and uncertainties have been described more
fully in Sunoco's Third Quarter 2004 Form 10-Q filed with the Securities and
Exchange Commission on November 4, 2004 and in other periodic reports filed
with the Securities and Exchange Commission. Sunoco undertakes no obligation
to update any forward-looking statements in this release, whether as a result
of new information or future events.
SOURCE Sunoco, Inc.
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Related links:
http://www.SunocoInc.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006
PRN Photo Desk, photodesk@prnewswire.com
Company News On-Call:
http://www.prnewswire.com/comp/829144.html
CONTACT:
Jerry Davis (media), +1-215-977-6298, or
Terry Delaney (investors), +1-215-977-6106, both of Sunoco, Inc.
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