03.03.2017

Conclusion of agreement between STALPROFIL S.A. Capital Group companies and OGP Gaz-System S.A. for supply of insulated steel pipes DN1000

The Board of STALPROFIL S.A., in reference to current report 3/2017 of 10 February 2017 announces that on 3 March 2017 it received information about signing by OGP Gaz-System S.A. (Employer) of an agreement between the consortium of companies comprising: IZOSTAL S.A. and STALPROFIL SA and OGP Gaz-System S.A. with its seat in Warsaw.

The contract covers manufacturing, sale and supply of insulated externally and internally painted steel pipes for an investment project implemented by OGP Gaz-System S.A. - pipeline DN1000 Lwówek-Odolanów and pipeline DN1000 Zdzieszowice-Kędzierzyn with a total length of about 66 km. As part of a consortium in charge of production and delivery of the above mentioned insulated steel pipes to OGP Gaz-System SA is the subsidiary IZOSTAL S.A. (Consortium Leader).

The value of the contract is 117 078 thousand PLN net, which is 144 006 thousand PLN gross. Implementation of the agreement will take place in the period from 1 July 2017 to 30 June 2018. Implementation of the agreement will have therefore significant impact on increase in revenues of the subsidiary IZOSTAL S.A. and STALPROFIL SA Capital Group in the second half of 2017 and the first half of 2018.