Hydro’s global IT organization is working continuously to resolve the situation together with external expertise. The company has now entered the recovery phase following the attack, gradually restoring IT systems in a safe and secure manner to ensure progress toward normal business while limiting the impact for people, operations, customers, suppliers and other partners.
Hydro has reported the sophisticated cyber attack to Norway’s National Investigation Service (Kripos) and is cooperating with relevant authorities, including the Norwegian National Security Authority (NSM).
It is premature to give any precise or detailed overview of the financial impact at this point. Based on a high-level evaluation, the preliminary estimated financial impact for the first full week following the cyber attack is around NOK 300-350 million, the majority stemming from lost margins and volumes in the Extruded Solutions business area.
Hydro has a solid cyber risk insurance policy with recognized insurers, with global insurer AIG as lead.
Update on operational status in the business areas
Energy: Production running as normal
Bauxite & Alumina: Production running as normal
Primary Metal: Production running as normal, with higher degree of manual operations
Rolled Products: Production running as normal, with higher degree of manual operations
Extruded Solutions: As of Tuesday, Extruded Solutions is producing at an overall production rate of 70-80 % in the three business units Extrusion Europe, Extrusion North America and Precision Tubing. In the Building Systems unit operations remain almost at a standstill. Based on current progress the expectation is for Building Systems to gradually ramp up production and shipments during the week.
Update for analysts and media
Hydro will host an analyst/media update on the situation at its corporate headquarters at Drammensveien 260, Oslo, at 14:30 CET today, March 26.
The update can also be seen on webcast.
Questions can be asked in writing through the webcast-link.
Published: March 26, 2019
