Moller-Maersk: cyberattack cost up to $300 million

Maersk shut down a number of its operations due to the Petya cyber attack.               Image Moller Maersk Group

Maersk shut down a number of its operations due to the Petya cyber attack. Image Moller Maersk Group

Transport & Logistics reported a consolidated revenue of Dollars 7.7bn, which was an increase of 15% compared to same quarter past year, and an underlying profit of USD 442m which was improved significantly, in large part driven by higher container freight rates.

Danish transport and logistics group AP Moller Maersk saw its shares lift Wednesday after its chief executive Soren Skou, painted an optimistic future for the company. To underscore the extent to which rates have strengthened, Maersk's volume grew only 2 percent year-over-year to 2.7 million TEUs. Maersk estimates the financial damage of the attack to be in the range of $200 million to $300 million and that it lost 70,000 TEUs worth of volume over the two weeks following the attack.

Søren Skou elaborates: "In the last week of the quarter we were hit by a cyber-attack, which mainly impacted Maersk Line, APM Terminals and Damco".

Today, the company said the shutdown had resulted in "significant business interruption", but added: "No data breach or data loss to third-parties has occurred".

Recovery from the attack took until July 9, and AP Moller-Maersk now says it will see a substantial financial impact.

Its Maersk Line container division took the biggest hit from the cyber attack, the firm said, though Maersk Line still forecast an improvement in underlying profit compared to a year ago. The strong results on the liner side were not matched by Maersk's terminal operating arm, APM Terminals, which slumped to a $118 million loss for the quarter compared to a $141 million profit in the same 2016 period.

"It was frankly quite a shocking experience", said Skou. The positive impact of those new agreements are expected to reflect in the second half of the year, Skou said.

"Maersk Line is again profitable delivering in line with guidance, with revenue growing by Dollars 1bn year-on-year in the second quarter".

Maersk notes that its focus on cost efficiency across all of the group's businesses "remains high".

In the quarter, Transport & Logistics reported a consolidated revenue of $7.7 billion, an increase of 15% compared to same quarter past year.

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