Conclusion of an agreement by the subsidiary Izostal SA with OGP Gaz-System SA for the supply of insulated steel pipes for the construction of the DN700 gas pipeline Wężerów-Przewóz

With reference to current report No. 3/2024 of January 29, 2024, the Management Board of STALPROFIL SA (Company) informs that on March 5, 2024, it received information about the signing of a Partial Agreement between the subsidiary Izostal SA (Contractor) and OGP Gaz-System SA with its registered office in Warsaw (Ordering Party). The Partial Agreement will be implemented within the framework of the concluded Framework Agreement, which the Company informed about in current report No. 34/2022 of September 30, 2022.
The subject of the Partial Agreement is the production, sale and delivery of externally insulated and internally painted DN700 steel pipes for part 1 of the investment project implemented by OGP Gaz-System SA entitled: "Delivery of steel pipes for the implementation of the DN700 MOP 8.4 MPa Wężerów-Przewóz gas pipeline with accompanying infrastructure" with a length of approximately 16 km.
The maximum value of the Partial Agreement will not exceed: PLN 31.9 million net, which is PLN 39.2 million gross. The indicated remuneration includes remuneration for the delivery of pipes and estimated remuneration related to the delivery tolerance of 0/+1% of the quantity of the ordered assortment, as well as remuneration to cover additional costs of possible transport to alternative places of pipe delivery, constituting a maximum of 1% of the value of the delivered pipes.
The Contractor will complete the Subject of the above-mentioned Partial Agreement between August 1, 2024 and December 31, 2024.
The detailed conditions under which the above-mentioned Partial Agreement will be implemented, including a description of contractual penalties, are specified in the Framework Agreement, which the Company informed about in current report No. 34/2022 of September 30, 2022.
The Company's Management Board considers the described agreement to be important due to its high value. The implementation of the above-mentioned agreement will have an impact on the increase in the Group's revenues.