UK group Rolls-Royce could sell off its commercial marine operations as part of a simplification of its business.
The unit's profitability has been hit by weak offshore oil and gas markets since 2015, it said.
It will be left with three core units based around civil aerospace, defence and power systems.
The marine business has already divested non-core operations and reduced the number of its sites from 27 to 15.
The workforce has been cut by 30% to 4,200, with most now based in the Nordic region.
But it has been investing in new facilities and new technologies to become an industry leader in the fields of ship intelligence and autonomous vessels, Rolls Royce said, culminating in June 2017 with the successful demonstration, in Copenhagen harbour, of the world’s first remotely operated commercial vessel.
The company added on Friday that the review does not include its Power Systems business, which includes MTU and Bergen Engines.
This unit is based in Friedrichshafen, Germany, and will continue to supply and service systems in marine and infrastructure markets.
Commercial Marine provides ship design and onboard equipment mainly for the offshore oil and gas and commercial marine markets.
"Given the progress the business has already made, it is now an appropriate time to conduct a strategic review of commercial marine. This review will be undertaken during 2018 and we will update the market of the outcome at the appropriate time," the company said.
Chief executive Warren East added: “This is the right time to be evaluating the strategic options for our commercial marine operation. The team there has responded admirably to a significant downturn in the offshore oil and gas market to reduce its cost base.
"At the same time, we have carved out an industry-leading position in ship intelligence and autonomous shipping and it is only right that we consider whether its future may be better served under new ownership.”
An obvious potential buyer is Finnish rival Wartsila, while some of the big classification societies could also be interested.
In 2016, commercial marine accounted for 75% of marine revenue, with naval operations accounting for the rest. The group will retain the naval business.
Shares rise
Shares in the company jumped to a 10-week high after it said the loss-making business could be sold.
The division fell into the red in the first half of 2017 as revenue plunged by 15%.
Despite a healthy performance by the group, Rolls-Royce Marine's underlying profit before financing fell by £17m to a negative £31m ($42.78m).
Original equipment (OE) revenue slipped by 22% and service revenue by 6%.
