Halliburton reports $35 million loss after ransomware attack

Halliburton has revealed that an August ransomware attack has led to $35 million in losses after the breach caused the company to shut down IT systems and disconnect customers.

Halliburton is a global provider of products and services to the energy industry, offering a range of solutions for oil and gas reservoirs, including exploration, development, and production.

The company operates in 70 countries, employing 48,000 individuals and reporting revenue that surpassed $23.02 billion.

In a filing with the U.S. Securities and Exchange Commission (SEC) on August 23, 2024, the company informed that an unauthorized third party had gained access to its systems.

In response to this breach, Halliburton shut down some of its IT infrastructure, which caused limited operational impact and client system disconnections.

A few days later, it was revealed that the RansomHub ransomware gang was responsible for the attack at Halliburton.

A subsequent 8-K Form filing with the SEC confirmed that the threat actors had stolen data from the company's network.

However, the type of information and scope of the data breach still remain subject to ongoing investigations.

At the time, Halliburton stated that it was unlikely the incident would have a material impact on its financials, and its third quarter 2024 earnings report confirms this estimate.

"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," commented Jeff Miller, Chairman, President, and CEO at Halliburton.

"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."

Although the cost of mitigating the cyberattack is relatively minor for a company the size of Halliburton, considering its total revenue and earnings, it is yet to be clarified what data was stolen by the RansomHub ransomware gang.

As such,  if the ransomware actors hold and potentially sell or leak data that exposes Halliburton clients in the future, the company could suffer additional financial costs from legal actions.