Halliburton Hit by Cyberattack: Oil Giant Suffers $35 Million Loss

In August, Halliburton fell victim to a cyberattack, compounded by severe storms in the Gulf of Mexico, impacting the company’s revenue. According to CEO Jeff Miller, the incident resulted in a $0.20 per share drop in earnings. In the third quarter, Halliburton incurred losses of $35 million due to the attack.

The incident affected the company’s free cash flow, as it delayed billing processes and payment collections. Halliburton even suspended its share repurchase program to address the attack’s aftermath. Nevertheless, the company maintained its forecasts for cash flows and shareholder payouts. As one of the world’s largest oil service companies, Halliburton’s financial standing remains resilient.

Miller expressed gratitude to employees for their efforts during the attack and acknowledged the support from clients. The CEO emphasized that, despite the challenges, employees managed to sustain operational continuity.

In the third quarter, Halliburton reported a net profit of $641 million on revenue of $5.7 billion. Miller explained that the cyberattack did not significantly impact the company’s overall financial performance. CFO Eric Carre added that the company does not anticipate substantial additional expenses from the attack in the fourth quarter and aims to resolve all issues by year’s end.

The attack, detected on August 21, led to system shutdowns and data theft. The group RansomHub is believed to be behind the attack, which caused widespread disruptions to Halliburton’s operations. Customers were unable to issue invoices or place orders as essential systems were offline. Halliburton confirmed that hackers gained access to several systems. However, the company initially refrained from disclosing details about the attack’s scope, causing discontent among clients left uncertain about potential implications for their businesses and the protective measures in place.