Rolls-Royce Holdings (LON:RR.) is considering the sale of its commercial marine business as part of a restructuring.
The company plans to streamline the business from five operating businesses into three core units of aerospace, defence and power systems.
“Alongside the simplification into three operating businesses, we must continue to address the cost and complexity of the structures that support and serve these businesses, including our corporate head office, with greater decisiveness,” said chief executive Warren East.
“Taking this action now will help secure the long-term benefit for our business and stakeholders of the growing cash flows that will be generated over the coming years.”
Rolls-Royce has kicked off a review of its commercial marine business, which has been hit by weak demand in offshore oil and gas markets since 2015.
In an effort to turnaround the business, the group has already divested non-core business, cut the number of sites from 27 to 15, and reduced its workforce by 30% to 4,200.
Shares jumped 6% to 904p in afternoon trading.