Conclusion by the subsidiary Izostal S.A. of the Agreement for the supply of insulated steel pipes DN700 to OGP Gaz-System S.A.
With reference to the current report No. 21/2020 of 1 July 2020, the Management Board of STALPROFIL S.A. (the Company) informs that on 24 July 2020 it received information about the signing of a Partial Agreement between the subsidiary Izostal S.A. (Contractor) and OGP Gaz-System SA with its seat in Warsaw (Ordering Party).
The Partial Agreement will be implemented under the Framework Agreement concluded by the parties on 16 August 2019, and its subject matter is the production, sale and delivery of DN700 externally insulated and internally painted steel pipes for the investment project carried out by OGP Gaz-System S.A. - Gas pipeline DN700 Poland-Lithuania southern section, order 1 with a length of approximately 37 km.
The value of the Partial Agreement is PLN 35.5 million net. The Contractor will perform the Subject of the Partial Agreement from 15 October 2020 to 15 March 2021.
Detailed conditions under which the above-mentioned Partial Agreement will be implemented, including a description of contractual penalties, are specified in the Framework Agreement, about which the Company informed in the current report No. 29/2019 of 16 August 2019.
The Management Board of the Company considers the concluded Agreement to be significant due to its high value. The implementation of the above-mentioned Agreement will have an impact on the growth of the Group's revenues.