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Norsk Hydro expecting $69m hit from cyber attack

6th June 2019 - Author: Charlie Wood

The cyber attack that hit aluminium manufacturing giant Norsk Hydro in March could cost the company as much as $69 million over the first two quarters of 2019.

NorskNorsk Hydro had previously disclosed that it expected to lose between NOK400 million and NOK450 million (US$46 million and $52 million).

According to an investor report released by the company, the overall financial impact of the cyber attack in the first quarter is estimated at between NOK 300 and 350 million ($35 million and $42 million), and between NOK 200 and 250 million ($23 million and $29 million) for the second.

The company says operations and sales have recovered successively during the quarter, reducing the incremental financial impact accordingly.

Hydro says it has a robust cyber insurance in place with recognised insurers, but has not yet recognised any insurance compensation. The company says this will be recorded when deemed virtually certain.

Norsk Hydro also previously confirmed that its cyber insurance policy does include business interruption cover.

The attack is suspected to be a form of ransomware called LockerGoga, which utilises an unusually disruptive hacking approach that can cause “chaos” for the industrial firms that it targets, according to cyber experts.

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