Conclusion of a contract with OGP Gaz-System S.A. for the supply of insulated steel pipes for the construction of the DN1000 Poland-Slovakia gas pipeline
With reference to current report 3/2019 dated 25 January 2019, the Management Board of STALPROFIL S.A. informs that on 13 February 2019 the Company was notified of the reverse 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 manufacture, sale and supply of insulated and internally insulated steel pipes for the investment project implemented by OGP Gaz-System S.A.: gas pipeline DN1000 Poland-Slovakia with the length of 19 km. The subsidiary Izostal S.A. (Consortium Leader) is part of the consortium responsible for the production and supply of the above-mentioned insulated steel pipes to the Ordering Party.
The partial agreement concluded 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 PLN 33,091 thousand net (PLN 40,702 thousand gross), and their implementation will take place from 1 June 2019 to 30 September 2019.
The implementation of the aforementioned partial agreement will have a significant impact on the increase in the value of revenues of the subsidiary Izostal S.A. and the Capital Group STALPROFIL S.A. mainly in the third quarter of 2019.