Following a cybersecurity incident, Halliburton, the oil giant, has disclosed the financial impact. The firm reported a loss of $35 million as a result of the cyberattack earlier this year.
Halliburton Reveals Financial Losses from Recent Cyberattack
Halliburton, a US-based oil service company, has provided further details on the financial repercussions of a recent cybersecurity breach.
The information was made public through a recent press release where Halliburton discussed its third-quarter earnings for 2024. The firm confirmed that it incurred losses amounting to $35 million due to the cyber incident.
In August 2024, Halliburton fell victim to a significant cyberattack that disrupted its operations. While initially hesitant to disclose details, the firm later acknowledged the breach in an SEC filing.
Initially, the exact nature of the attack was unknown, and Halliburton refrained from issuing an official statement. However, the incident was later identified as a ransomware attack when the firm notified its suppliers, citing the RansomHub encryptor among the IOCs.
Despite the recent update, there has been no further information regarding the removal of the ransomware infection. It remains unclear whether a ransom was demanded and if Halliburton opted to pay it.
Nevertheless, the Q3 2024 Earnings Report indicates a significant financial impact on Halliburton. According to Jeff Miller, Chairman, President, and CEO of Halliburton,
We experienced a $0.02 per share impact to our adjusted earnings from lost or delayed revenue due to the August cybersecurity event and storms in the Gulf of Mexico. Our full-year expectations for free cash flow and cash return to shareholders remain unchanged, and we expect both to accelerate in the fourth quarter.
The losses totaled $35 million in September 2024, with an additional $116 million pre-tax charge related to the security incident.
During the three months ended September 30, 2024, Halliburton recognized a pre-tax charge of $116 million as a result of severance costs, an asset impairment, expenses related to the cybersecurity incident, a gain on an equity investment, and other items.
Despite these setbacks, Halliburton is optimistic about improved earnings in Q4 2024.
As of now, there is no information available on the impact of the cyberattack on Halliburton’s data, and the attackers have not indicated any plans for a data dump.
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