Conclusion of an agreement with OGP Gaz-System S.A. for the supply of insulated steel pipes for the construction of the DN1000 gas pipeline Pogórska Wola - Tworzeń

With reference to current report 7/2019 of 25 February 2019, the Management Board of STALPROFIL S.A. informs that on 14 March 2019 the Company was notified of the reverse signing of a partial agreement by OGP Gaz-System S.A. between a consortium of companies consisting of: STALPROFIL S.A. and Izostal S.A. (Contractor), and OGP Gaz-System S.A. with its registered office in Warsaw (Ordering Party).
The subject of the contract is the manufacture, sale and supply of insulated and internally insulated steel pipes for the investment project carried out by OGP Gaz-System S.A.: DN1000 gas pipeline Pogórska Wola - Tworzeń order 3, about 64 km long. The subsidiary IZOSTAL S.A. (Consortium Leader), as part of the consortium, is responsible for the production and supply of the above-mentioned insulated steel pipes for the Ordering Party.
The partial agreement concluded will be implemented under and under the terms of the framework agreement of 17 April 2015, concluded between the Consortium of the following companies: Izostal S.A. and STALPROFIL S.A., and OGP Gaz-System S.A.
The value of deliveries covered by the partial agreement concluded is PLN 121,254 thousand PLN net (PLN 149,142 thousand gross), and their implementation will take place from 1 September 2019 to 31 January 2020.
The Management Board of the Company recognizes the concluded contract as significant due to its high value. The implementation of the aforementioned partial agreement will have a significant impact on the increase in the value of revenues of the subsidiary Izostal S.A. and STALPROFIL S.A. Capital Group.