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

With reference to the current report 11/2018, dated 1 March 2018, the Management Board of STALPROFIL S.A. informs that on 28 March 2018 the Company was notified of signing by OGP Gaz-System S.A. of contracts between the consortium of companies consisting of: STALPROFIL S.A. and Izostal S.A. (the Contractor) and OGP Gaz-System S.A. with its registered office in Warsaw (the Employer).
The subject of the contract is manufacture, sale and supply of insulated and internally insulated steel pipes for an investment project carried out by OGP Gaz-System S.A.: DN1000 gas pipeline Pogórska Wola - Tworzeń, about 41 km in length.
As part of the consortium, the subsidiary IZOSTAL S.A. (the Consortium Leader) is responsible for production and supply of the above-mentioned insulated steel pipes to the Employer.
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 companies consisting of: IZOSTAL S.A. and STALPROFIL S.A., and OGP Gaz-System S.A.
The value of deliveries covered by the contract is PLN 70,901 thousand PLN net (PLN 87,208,000 gross) and their implementation will take place from 1 September 2018 to 31 January 2019. The implementation of the aforementioned partial agreement will therefore have a significant impact on increase in the value of revenues of the subsidiary IZOSTAL S.A. and the STALPROFIL S.A. Capital Group, mainly in the second half of 2018.