Conclusion of an agreement between STALPROFIL S.A. Capital Group and OGP Gaz-System S.A. for supply of insulated steel pipes DN1000
The Board of STALPROFIL S.A., in reference to current report no. 10/2017 dated 7 June 2017, reports that on 26 June 2017 it was notified about signing by the OGP Gaz-System S.A. a partial agreement between the consortium of companies comprising: IZOSTAL S.A. and STALPROFIL S.A. (Contractor) and OGP Gaz-System S.A. with its seat in Warsaw (Purchaser).
The contract covers manufacture, sale and supply of insulated externally and painted internally steel pipes for investment project implemented by OGP Gaz-System S.A. - pipeline DN1000 Strachocina-Pogórska Wola with total length of 55 km. The subsidiary IZOSTAL S.A. (Consortium Leader) is the part of the consortium responsible for production and delivery of the insulated steel pipes to OGP Gaz-System S.A.
The partial agreement will be implemented in the framework and under conditions of the framework agreement dated 17 April 2015 between the consortium of companies comprising: IZOSTAL S.A. and STALPROFIL S.A. and and OGP Gaz-System S.A. The value of the partial contract is 97 143 thousand PLN net, which is 119 486 thousand PLN gross, and its implementation will take place from 1 November 2017 to 30 June 2018.
Implementation of the partial agreement will have therefore a significant impact on the growth of revenues of the subsidiary IZOSTAL S.A. and STALPROFIL S.A. Capital Group in the first half of 2018.