Halliburton's stock falls after company says recent cyberattack disrupted its business

By Ciara Linnane

Oil services provider says the hack it disclosed in August has allowed a third party to gather information from its systems

Halliburton Co.'s stock (HAL) fell 4% Tuesday, after the oil services provider said the recent cyberattack has disrupted and limited access to some of its business applications.

The company, which first disclosed the hack in August, said it believes the unauthorized third party has accessed and exfiltrated information from its systems and is evaluating the nature and scope of the information and what notifications are needed.

The company has incurred costs related to the response to the incident, and may incur further costs, according to a regulatory filing. However, it believes the incident "has not had, and is not reasonably likely to have, a material impact on the company's financial condition or results of operations."

But certain risks remain as it works to resolve the matter, including the adequacy of processes during the period of disruption, the diversion of management's attention, potential litigation, potential changes in customer behavior and regulatory scrutiny.

Halliburton activated its cybersecurity response plan once it learned of the hack and launched an internal investigation with the help of outside experts. It also took certain systems offline to protect them and notified law enforcement.

"The company's ongoing investigation and response include restoration of its systems and assessment of impacted data," it said in the filing.

The stock has fallen 17.5% in the year to date, while the S&P 500 has gained 17.0%.

See also: Halliburton's stock erases year-to-date gains after revenue falls short of estimates

-Ciara Linnane

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

09-03-24 1007ET

Copyright (c) 2024 Dow Jones & Company, Inc.