Uncomfortable charts from Oil and Gas stock Kris Energy

More uncomfortable news from the local Oil & Gas sector this time Kris Energy (ticker SK3.SG) with a comprehensive story from Kyith Ng at InvestmentMoats.

We are seeing more uncomfortable news in the oil and gas space after the Swiber holdings wind up news. And this may make the bond holders of oil and gas bonds more jittery the same way the bond holders of Swiber Bonds felt.

KrisEnergy, an oil and gas producer, have a debt facility coming on due in 2017, and it seems they are in danger of breaching their debt covenants.

Debt Covenants are certain terms and hurdles a borrower have to keep within the boundaries. Failure which, their interest cost either goes up dramatically, or that the lender have the right to call back the debt from the borrower. These are often represented as financial ratios. Typical financial ratios are maintaining a maximum debt to asset ratio, or a negative covenant to keep them from doing anything funny such as debt to EBITDA.

The bond in question is: KRISSP 6.250% 09Jun2017 Corp (SGD)

 

From SharesInv.com, Kris Energy is described as

An independent upstream Co focused on the exploration, devt, & pdtn of O&G in SEA. [FY14 Turnover] Crude oil (66.5%), gas (33.5%).

 

This is the picture from my charts.

Weekly chart with 13-, 26- and 52-week exponential moving average

  1. New 52-week lows
  2. Quarterly, half-yearly and yearly moving averages all pointing down with no sign of recovery, u-turn.
  3. Black candles or down weeks dominate; up weeks run into moving averages which act as resistance.
  4. Similarity to Swiber chart, all major Oil and Gas players Keppel, Sembcorp and Sembmarine.
  5. Technically there is no sign of bottoming.
Kris Energy (ticker: SK3.SG) weekly chart with weekly emas

Kris Energy (ticker: SK3.SG weekly chart with weekly emas

 

HABBSTS chart

This is the Heikin Ashi Bollinger Band Stock Timing System that I am testing. How to use rules over here.

Application of the system to Kris Energy should employ Strategy B i.e. continuation. Price continues to widen with black Heikin Candles and trading below 3-week, 2 displaced ema. Chart shows continuation sell with no buy setup.

Kris Energy weekly chart with Heikin Ashi Bollinger Stock Timing System

Kris Energy weekly chart with Heikin Ashi Bollinger Stock Timing System

 

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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