Conclusion of an annex to the agreement with the OGP Gaz-System SA for the construction of a pipeline DN 700 Szczecin-Gdańsk, Phase II-IV

In reference to the current report 13/2012, 29/2012, 29/2013 and 11/2014 the Management Board of Stalprofil SA informs that on 12 November 2014 has been signed an annex to the agreement of 10 May 2012, between the consortium companies (Contractor) composed of ZRUG Zabrze SA as the leader of the consortium, and Stalprofil based in Dąbrowa Górnicza (consortium member) and Gas Transmission Operator GAZ-SYSTEM SA with its registered seat in Warsaw (the Employer), for general investment "Construction of the pipeline DN 700 Szczecin-Gdańsk: Phase II Karlino-Koszalin, Phase III Koszalin-Słupsk and Phase IV Słupsk-Wiczlino".
The object of the said annex is change (prolongation) of term of the investment (receiving end) until 22.12.2014 inclusive, which was originally defined until 11.14.2014. The condition of final acceptance will provide the Employer, signed by the parties protocols partial acceptances of Phase II and Phase III, which should take place until 12.22.2014 inclusive.
Moving the above deadlines was held at the request of ZRUG Zabrze SA and justified by:
- the need to correct errors or make changes in design documentation,
- the need to perform additional works unforeseen originally to be implemented within the task,
- unforeseen difficulties regulations in connection with the work carried out in difficult terrain.
In view of the fact that the original deadline for completion of construction of this pipeline has been extended, there is a risk that the actual return on the contract may differ from the originally assumed. Any deviations from the expected costs and revenues of the budget and to determine their impact on the Group's result will be possible to determine at the end of the contract and the execution of the accompanying additional work, including determining the cost of these additional works and the level of coverage by the Employer.
The agreement with the OGP Gaz-System SA, which was drawn up in the annex, meets the criterion of a significant agreement because its value exceeds 10% of the equity of the issuer.