Papapanagiotou AVEEA – Runner is making clarifications on the occasion, as the company states in a relevant announcement, questions that are raised regarding the influence on profitability from the increase of raw material prices and energy costs in the company’s ongoing contracts to German army as well as the new contract of the European Commission, totaling approximately € 80 million.
In particular, the company states that:
A) New European Commission Convention
The competition was held in March 2021 and we took into account the increases in raw materials and energy in our offer. In addition, the contract provides for a price revision depending on the circumstances.
B) Contracts for German Army projects
For the German Army project contracts which come from our previous coronavirus offers, after a documented presentation of the increases by our company, similar price revisions were accepted, able to maintain to a large extent the profitability that we initially budgeted from the implementation of the projects.
Source From: Capital