Unexpected market condition has forced BP to rethink on its business strategy. The company has failed to make second quarter profitable amid the recent operational problems. BP’s second quarter replacement cost profit decreases by 1 percent to $6.09 billion as oil driller faced diminishing oil and gas production problems at some of its refineries. Production at BP fell to 3.8 million barrels but analysts were relieved that the company left its full-year production target unchanged. In refining, shutdowns have resulted in sites running at only 83pc capacity on average. Despite increase in its income by 1.5 percent to $7.38 billion, owing to surging oil prices, BP still needs new oilfields, which seems difficult at this time. In this loss-making spree, BP replaced its chief executive Tony Hayward over Lord Browne in May. The new chief executive admitted that the company’s current operational performance is not good enough and pledged to streamline it soon, however, declined to give a timetable for returning to growth. BP’s results and reputation have been hit over the past two years by delays in major projects, U.S. investigations into alleged market manipulation, Alaskan oil spills and a refinery explosion in Texas City which killed 15 workers. Further, going against all expectations, BP has completely ruled out any merger plans with rival Royal Dutch Shell, and apparently have opened a new chapter for the company by promising to rebuild revenues and simplify the business. Under new chief executive Tony Hayward, the company shows a sign of improvement as it overcame refinery disruptions at plants in Texas and Indiana. BP is counting on new output at the Rosa field in Angola and plans to start the Atlantis platform in the Gulf of Mexico to help counter declining oil and gas production. BP’s shares, which fell from 712 to 507 pence, closed 11.5p lower at 590 pence. Via: Telegraph