(Ecofin Agency) - Eni SpA said its Q2 profit has dropped 84% as its subsidiary Saipem SpA, after a slump in crude prices earlier this week booked $1 billion in writedowns.“Adjusted net income declined to 139 million euros ($153 million) from 883 million euros a year earlier.” Eni said in a statement.

Refining and productivity gains were offset by an adjusted net loss of 717 million euros at the engineering and construction unit, which includes Eni’s 42.9 percent share in Saipem. According to the Milan-listed contractor on Tuesday, it plans to cut 8,800 jobs as writedowns of 929 million euros which led to a net loss of 997 million euros in the second quarter.

Chief Executive Officer Claudio Descalzi said earlier this year it may sell only a part of its stake in order to reduce debt, after Eni first declared that Saipem isn’t a core part of its business,

The stock climbed as much as 2.4 percent after falling earlier. Oswald Clint, an analyst at Sanford C. Bernstein & Co., said. “Beyond the Saipem debacle, Eni’s results are actually really impressive,”

In March, Eni was the first major oil company to announce a dividend cut following the slump in crude oil prices.

“I don’t say that Saipem is a concern for us, it’s an opportunity,” Descalzi said. In terms of cost cuts and refocusing its business, he declared that he is happy with what they are now doing.

Eni however, expects to maintain leverage, as well as its ratio of net borrowings, within 30 percent at the end of the year.