Information on the conclusion by the subsidiary Izostal SA of contracts for the supply of insulated steel pipes to OGP Gaz-System SA (FSRU project, procedure No. 1)

With reference to current report no. 20/2024 dated May 27, 2024, the Management Board of Stalprofil SA (hereinafter referred to as the Company) hereby announces that on July 17, 2024, it was informed that its subsidiary Izostal SA (hereinafter referred to as the Contractor) concluded Partial Agreements with OGP Gaz-System SA with its registered office in Warsaw (hereinafter referred to as the Ordering Party) for the supply of insulated steel pipes for the implementation of the following projects: POM1: "Kolnik-Gdańsk gas pipelines together with the infrastructure necessary for their service in the Pomeranian Voivodeship"; POM2: "Construction of the DN1000 MOP 8.4 MPa Gustorzyn-Wicko gas pipeline, part 2 of the Gardeja-Kolnik section"; POM3: "Construction of the DN1000 MOP 8.4 MPa Gustorzyn-Wicko gas pipeline, part 1, section Gustorzyn-Gardeja". Proceeding No. ZP/2024/04/0031/PZ - for Parts 1, 3 and 5. Partial Agreements will be implemented under the concluded Framework Agreement, about which the Company informed in the current report No. 34/2022 of September 30, 2022.
1. The subject of the Partial Agreement for Part 1 of the above investment task is the production, sale and delivery of externally insulated and internally painted steel pipes with a diameter of DN1000 with a length of approximately 11 km. The maximum value of the Partial Agreement will not exceed the amount of: PLN 37.2 million net, which is PLN 45.7 million gross. The Contractor will perform the Subject of the Partial Agreement in the period from February 1, 2025 to April 30, 2025.
2. The subject of the Partial Agreement for Part 3 of the above investment task is the production, sale and delivery of externally insulated and internally painted steel pipes with a diameter of DN1000 with a length of approximately 23 km. The maximum value of the Partial Agreement will not exceed the amount of: PLN 62.5 million net, which is PLN 76.9 million gross. The Contractor will perform the Subject of the Partial Agreement in the period from February 1, 2025 to August 31, 2025.
3. The subject of the Partial Agreement for Part 5 of the above investment task is the production, sale and delivery of externally insulated steel pipes with diameters from DN1200 to DN1400 with a length of approximately 2 km. The maximum value of the Partial Agreement will not exceed the amount of: PLN 10.1 million net, which is PLN 12.4 million gross. The Contractor will perform the Subject of the Partial Agreement in the period from January 1, 2025 to January 31, 2025.
The indicated maximum remuneration for each of the described Partial Agreements includes: remuneration for the delivery of pipes and an estimated remuneration related to the delivery tolerance of 0/+1% of the quantity of the ordered assortment, remuneration to cover additional costs of possible transport to alternative places of delivery of pipes, constituting a maximum of 1% of the value of the delivered pipes, as well as an indexation of remuneration in a maximum amount not exceeding 10% for the delivery of pipes.
Detailed terms and conditions under which the above-mentioned Partial Agreements will be implemented, including a description of contractual penalties, are specified in the Framework Agreement, which the Company reported in current report No. 34/2022 of September 30, 2022.
The Management Board of the Company considers the described agreements to be significant due to their high value. The implementation of the above agreements will have an impact on the growth of the Group's revenues.