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Goldman Sachs downgraded Aker BP (NYSE:BP) (AKRBP:NO) (OTC:DETNF) stock rating from Neutral to Sell on Thursday, setting a price target of NOK230.00.
The investment bank cited Aker BP’s high exposure to potential oil price corrections in 2025 and 2026 compared to other European exploration and production companies. Goldman Sachs maintains Brent crude price assumptions of $64 and $65 per barrel for 2025 and 2026, respectively.
Aker BP has hedged only 15% of its oil price exposure for the second through fourth quarters of 2025 through put options with a $65 per barrel strike price, leaving it with significant exposure to spot Brent crude prices.
By comparison, Goldman Sachs noted that other exploration and production companies have secured higher levels of oil hedging, with Ithaca Energy (LON:ITH) hedging 29% of its 2025 oil production and Harbour Energy hedging 29% and 23% of its 2025 and 2026 oil production, respectively.
Goldman Sachs’ commodities team holds an even more bearish outlook on Brent crude prices, projecting $65 per barrel in 2025 and $56 per barrel in 2026.
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