Is this the start of the demise of BP?

Although BP announced second-quarter profits of $5.6bn, investors are still unimpressed with the rate of turnaround. And with some calling for a break up of the oil giant, is this the beginning of the end for BP?

Oil giant BP announced second-quarter profits of $5.6bn on Tuesday, a considerable improvement on record losses of $17bn a year ago. But this turnaround failed to impress investors sufficiently: total production figures disappointed and the company's dividend remained low. The news sent BP shares sliding, ending the day 2.4% down.

What the commentators said

BP-share-price

Yet all is not lost, argued Alison Smith in the Financial Times. The company's drop in output can be largely explained by its lack of drilling activity in the Gulf of Mexico. Future cash flow looks promising. Optimists can equally well say that BP looks set to continue moving from "strengthening to strength".

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