New Owner Assures New Memphis-Area Employees They 'Will Retire From Valero'
By Jane Roberts, The Commercial Appeal, Memphis, Tenn.
Feb. 17--Months after Valero Energy Corp. purchased Premcor, the top executives were in town Thursday serving employees the company's traditional welcome barbecue.
By the end of lunch, no one in the denim-wearing crowd cared that it was Texas vinegar-based sauce and brisket.
"You've had a lot of owners," chairman and founder Bill Greehey told about 350 workers at the refinery off Interstate 55 and Mallory. "Let me tell you, even the youngest in this room will retire from Valero."
Heads bobbed in wonder at tables across the room as he outlined the company's cash pension plan -- now almost unheard of anywhere -- its employee-driven-management style and philanthropy.
"We've never had a layoff in our company," Greehey said. "When we go through difficult times, we will be calling on you to do more."
Valero is No. 3 on Forbes' list of the "100 Best Companies to Work For," up from No. 23 last year.
The reception was so warm, in the end, the employees were presenting the gifts, including handmade grill implements in a handsome wooden box -- handmade, of course -- and a framed photo of Greehey with an original copy of Elvis's hit single "Follow that Dream."
"Thank you for following your dream," refinery engineer Fred Price told Greehey.
Valero, now the largest refining company in North America, acquired Premcor Sept. 1 just as the Gulf Coast and much of the nation's oil production was being pummeled by Katrina.
Within days, the situation was so bleak, the Memphis refinery was one of only a handful in Valero's portfolio up and running.
"In September, Memphis produced $129 million, No. 2 in profitability of all 18 of our refineries," Greehey said.
"Valero's got a lot of capital money, and they're looking to spend some here," said mechanical engineer Walt Fisher. "Some people are still taking a wait-and-see attitude, but I think things are better already."
Understand the reticence: Since 1998, the Memphis refinery has had four owners, including Williams and Mapco before Premcor.
Monday, the plant will close a $60 million revamping meant to improve reliability, safety and profitability. The work will be done by about 2,000 contractors, working day and night.
Over the course of the year, Valero will spend another $100 million on upgrades to produce higher grade gasoline and diesel fuel, said chief executive officer Bill Kleese.
"We've got $3.4 billion in our capital expenditure budget for this year. We'll spend $160 million of that in Memphis."
Valero's profits nearly tripled in the fourth quarter, going to $1.35 billion from $485 million a year ago.
It also processed 3 million barrels a day in the quarter for the first time in the company's history.
The company benefited from higher product margins, induced by the storms and refinery shutdowns, but also from the Premcor acquisition, which added about 900,000 barrels to its daily production of gasoline, jet fuel and diesel.
The addition "bumped us over the top," Kleese said, "from third or fourth to No. 1."
Since 1997, Valero has added 17 refineries through acquisitions.
"We're buyers, not sellers," Kleese said. "We're buyers and improvers."
Because of the warm winter, stock prices are off more than $10 a share since Feb. 1, closing Thursday at $53.82, down from a 52-week high of $63.70.
|
Thread abonnieren
