30.07.2018

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 - order 2

With reference to current report 25/2018 dated 6 July 2018, the Management Board of STALPROFIL S.A. informs that on 30 July 2018 the Company was notified of 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 2, about 65 km long. As part of the consortium, the subsidiary IZOSTAL S.A. (Consortium Leader) is responsible for the production and supply of the above-mentioned insulated steel pipes to the Ordering Party.
The concluded partial agreement 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 contract is 116,141 thousand PLN net (142,854 thousand PLN gross) and their implementation will take place from 1 January 2019 to 30 July 2019.
The implementation of the aforementioned partial agreement will have a significant impact on the increase of the value of revenues of the subsidiary company IZOSTAL S.A. and the STALPROFIL S.A. Capital Group, mainly in the first half of 2019.