Conclusion of Framework Agreements with PGNiG S.A. by the subsidiary Izostal S.A. regarding supply of casing and mining pipes with accessories
The Management Board of STALPROFIL S.A. informs that on 20 February 2018, as a result of an unlimited tender "Supply of casing and mining pipes along with equipment for the needs of work carried out by PGNiG S.A.", the subsidiary Izostal S.A. (Seller) concluded ten Framework Agreements with Polskie Górnictwo Naftowe i Gazownictwo S.A. (the Buyer), which specify the terms of execution of the Implementation Orders that may be provided by the Buyer to the subsidiary Izostal S.A., as one of the potential Sellers selected in the aforementioned tender.
The subject of Executive Orders awarded on the basis of concluded Framework Agreements will be delivery of brand new casing and mining pipes with accessories (i.e. manipulators, connectors) for the needs of work carried out by PGNiG S.A.
In accordance with the provisions of the Framework Agreements, the Buyer will invite each time all the Sellers with whom he concluded the Framework Agreement for submission of bids. The criterion for evaluation of submitted executive bids will be gross price. The basis for implementation of Executive Order will be an Implementing Agreement concluded with a Seller whose offer will be selected as the most advantageous.
The total value of Executive Orders implemented under the aforementioned Framework Agreements between Izostal S.A. and PGNiG may not exceed PLN 19,399 thousand euro net, which after conversion according to the exchange rate of the National Bank of Poland published on 20 February 2018, is 80,452 thousand PLN.
The deadline for completion of each Executive Order will not be shorter than 90 days and longer than 360 days from the date of awarding an Executive Order (conclusion of an Executive Agreement). In particularly justified cases (e.g. significant changes to planned works), the Buyer will be able to specify a delivery deadline shorter than 90 days. Settlements between the Buyer and the Seller will be carried out in euro. Framework Agreements have been concluded for 24 months from the date of their signing.
The Management Board of STALPROFIL S.A. considers these Framework Agreements to be essential due to their potentially high value. Implementation of Executive Contracts that Izostal S.A. may conclude under the aforementioned Framework Agreements may have a positive impact on its revenues, and thus on the revenues of the STALPROFIL S.A. Capital Group.