In their 2015 Q1 corporate earnings report on Industrial Holding Bulgaria (4ID BU), one of the largest conglomerates in the country, ELANA Trading analysts pointed out improvement of sales of machines and stable revenues from chartering services despite the decline of freight rates.
The reason for weak results in the report of the largest industrial holding on the Bulgarian Stock Exchange was the appreciation of the US Dollar and the large dollar-denominated debt of the holding.
Expectations for Q2 are also not very positive since low level of Baltic Dry Index persisted until June and the revenues from chartering services will remain subdued. However, sales of the Bulgarian holding are less volatile as part of them are rents of the ships.
Industrial Holding Bulgaria is the owner and the operator of five ships with total capacity of 162,000 dwt. Chartering services represent 56% of total revenues, a substantial increase from the 21% level in 2010. The Holding is the owner of the largest shipyard in Bulgaria and it also has long lasting traditions in construction of lathes, electric motors and hydro generators for water power plants. Subsidiaries are owned through ZMM Bulgaria Holding, established in 2001. Major markets are Germany, Italy, USA, Russia and Turkey, Middle and Far East, Central and South America. Major clients are Linde, Siemens, Thyssen Krupp, Bosch, Fiat and Man.