$35 Million Losses Hit The Firm

Months after the cybersecurity incident, Halliburton, the oil giant, has shared details about the financial losses incurred. The latest update reveals that the cyberattack earlier this year cost the firm $35 million.

Halliburton Reveals Financial Impact of Cyberattack

Halliburton, the US-based oil service firm, has recently disclosed more information regarding the financial repercussions of the recent cybersecurity breach.

This information was made public through a press release detailing Halliburton’s earnings for the third quarter of 2024. The firm reported losses amounting to $35 million as a result of the cyberattack.

In August 2024, Halliburton fell victim to a significant cyberattack that disrupted its regular operations. While the company initially remained silent, it later acknowledged the incident via an SEC filing.

The exact nature of the cyberattack was unclear initially, and Halliburton had not issued any official statements. However, it was later confirmed to be a ransomware attack when Halliburton notified its suppliers, mentioning the RansomHub encryptor among the IOCs.

Despite the update, there is no further information available on whether the firm was able to eliminate the ransomware infection. It is also unknown how much ransom the attackers demanded and whether the company opted to pay it.

Nevertheless, the recent Q3 2024 Earnings Report indicates that the cyberattack had a significant financial impact on Halliburton. According to Jeff Miller, the 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.”

These losses amounted to $35 million in September 2024. The company also reported a $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 impairment of assets held for sale, expenses related to a cybersecurity incident, a gain on a fair value adjustment of an equity investment, and other items.”

Despite the setbacks, Halliburton remains optimistic about improved earnings in Q4 2024.

Currently, there is no information available regarding 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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