Italian giant Eni is reportedly considering a major reorganisation of its business in response to the current market that would see it breaking off into two separate units.

According to a report by Italian media outlet IlSole24, Eni’s restructuring plans could see one segment of the business dedicated to oil-related midstream and upstream activities, with a second arm focused on the energy transition and downstream.

Eni has been approached for comment.

Eni, which recently reported nearly €3 billion ($3.3 billion) of losses for the first quarter of the year, put its business plans under review in March as its home market was witnessing one of the worst outbreaks of Covid-19 in Europe.

Chief executive Claudio Descalzi said at the time the revision would consider a strong reduction in capital expenditure, consistent with the new oil price scenario.

Eni also lowered its production guidance for the year amid the demand destruction from the pandemic in the first quarter.

The company reported a net loss of €2.93 billion for the first quarter compared to a net profit a year earlier of €1.09 billion. Revenues in the quarter sank to €14.09 billion from €18.8 billion.