Selection of the offer of the subsidiary Izostal SA as one of the most advantageous in the proceedings aimed at concluding Framework Agreements for the supply of steel pipes for investment tasks carried out by OGP Gaz-System SA

On August 24, 2022, the Management Board of STALPROFIL SA (the Company) was informed about the selection by the OGP Gaz-System SA with its registered office in Warsaw (Ordering Party), the offer submitted by the subsidiary Izostal SA (Contractor) as one of the most advantageous in public proceedings conducted in the open tender procedure in order to conclude Framework Agreements for the supply of steel pipes for investment tasks carried out by OGP Gaz-System SA - Parts No. 1, 2, 3 and 4. Procedure number: ZP/2021/12/0129/PZ.
The subject of the contracts awarded on the basis of Framework Agreements will be:

• for part 1: supply of brand new, externally insulated and internally painted (optionally laminated) steel pipes with a diameter of DN1000;
• for part 2: supply of brand new, externally insulated and internally painted (optionally laminated) steel pipes with a diameter of DN700;
• for part 3: supply of brand new, externally insulated and internally painted (optionally laminated) steel pipes with a diameter of DN500;
• for part 4: supply of factory new, externally insulated (optionally laminated) casing pipes with a diameter from DN700 to DN1400.

On the basis of the concluded Framework Agreements, the Ordering Party provides for the delivery of pipes with a total length of approximately 791 km for investment tasks carried out by OGP Gaz-System SA.
The Ordering Party announced that it intends to allocate PLN 2,187,767,444.37 gross (PLN 1,778,672,719.00 net) for the financing of Framework Agreements, including:

• in part 1: PLN 1,725,645,476.46 gross (PLN 1,402,963,802.00 net),
• in part no. 2: PLN 305,675,543.46 gross (PLN 248,516,702.00 net),
• in part no.3: PLN 123,942,247.65 gross (PLN 100,766,055.00 net),
• in part 4: PLN 32,504,176.80 gross (PLN 26,426,160.00 net).

The Ordering Party will conclude a Framework Agreement for a period of 4 years (applies to all Parts), starting from its signing by both parties.
The Company will inform in a separate current report about the conclusion of Framework Agreements between Izostal SA and OGP Gaz-System SA and the material conditions contained in these Agreements.
After signing the Framework Agreements, the Awarding Entity will award performance contracts. The contractor for the performance contract will be selected as a result of an invitation to tender.
The Management Board of the Company considers the information described as significant due to the high value of the above-mentioned Framework Agreements. The possible implementation of the Partial Agreements concluded under the Framework Agreements in question may have an impact on the increase in revenues of the STALPROFIL SA Capital Group.