Signing by a consortium composed of Stalprofil S.A. and Izostal S.A. of two contracts with OGP Gaz-System S.A. for supply of insulated steel pipes DN1000

In reference to current reports 2/2018 of 4 January 2018 and 3/2018 of 5 January 2018, the Board of STALPROFIL S.A. informs that on 1 February 2018 the Company was informed about signing by OGP Gaz-System S.A. of two partial agreements between the consortium composed of STALPROFIL S.A. and Izostal S.A. (Contractor) and OGP Gaz-system S.A. with its seat in Warsaw (Purchaser).
The object of the agreements is to produce, sell and supply externally and internally insulated painted steel pipes for the following investment tasks implemented by OGP Gaz-System S.A.:
1. Pipeline DN1000 Strachocina-Pogórska Wola, about 40 km long.
2. Pipeline DN1000 Tworóg-Tworzeń, about 55 km long.
The total value of the contracts amounts to 169,001 thousand PLN net (207,871 thousand PLN gross), including:
- for the investment project: pipeline DN1000 Strachocina-Pogórska Wola, with the completion term 01.06.2018-31.07.2018, the value of deliveries is 75,218 thousand PLN net (92,518 thousand PLN gross),
- for the investment project - pipeline DN1000 Tworóg-Tworzeń, with the completion term 01.06.2018-28.02.2019, the value of deliveries is 93,783 thousand PLN net (115,353 thousand PLN gross).
The subsidiary IZOSTAL S.A. (Consortium Leader) acts as the part of the consortium responsible for production and delivery of the insulated steel pipes to the Purchaser.
Partial Agreements will be implemented in the framework and under the terms of the framework agreement of 17 April 2015, concluded between the consortium of companies comprising: IZOSTAL S.A. and STALPROFIL S.A., and OGP Gaz-System S.A.
Implementation of partial agreements will have a significant impact on the growth of the revenues of the subsidiary IZOSTAL S.A. and the STALPROFIL S.A. Capital Group, mainly during the second half of 2018.