About two months before the Newpark Resources attack, oilfield services giant Halliburton had been afflicted with a cyberattack that it then disclosed in a regulatory filing, which occurred about two months earlier.
Last week, Halliburton, the world's largest energy services provider, announced that about $35 million in expenses were incurred because of the attack. Still, the impact on the company's finances is relatively small, especially considering Halliburton is one of the world's largest energy services providers.
There was an incident in August when Halliburton, a global provider of services for the energy industry, had to shut down the systems of some of its subsidiaries due to a cyber attack. In most cases, this type of breach involves unauthorized access by third parties; oftentimes, this leads to operations being disrupted, systems being shut down, and incident response plans being activated as a result of the breach. A cyber-response plan was activated at that time and a comprehensive investigation was conducted internally with the assistance of external advisors to assess and remedy any unauthorized activity that the company was aware of at that time.
Halliburton announced last week that in its third-quarter results it incurred a pretax charge of $116 million as a result of severity costs, impairment of assets held for sale, expenses related to cybersecurity incidents, gains on equity investments, and other items. The company said in the release that it recorded a pretax charge of $116 million in the third quarter of 2024.
In a report released on Tuesday, Halliburton's chairman, president, and CEO, Jeff Miller, said that Halliburton "experienced a $0.02 per share impact on its adjusted earnings from storms in the Gulf of Mexico and in the Gulf of Mexico due to the August cybersecurity event."
While the update is not in any way noteworthy, Andy Watkin-Child, founding partner at Veritas GRC told LinkedIn it shows cyber incidents are moving to the top of the corporate agenda, in a post on the social media platform. The board of directors is more transparent, as required by the Securities and Exchange Commission when it comes to the impact of cyber incidents.
Following the attack on Halliburton, the company had to postpone billing and collection activities, as well as put a halt on its share buyback program.
According to the company, the full impact will not be material for the company's operations in the long run.
The Newpark Resources Group announced this week that access to certain information systems and business applications has been disrupted due to a ransomware attack that has hit their network.
According to a filing with the Securities and Exchange Commission (SEC), the incident was discovered on October 29 and a cybersecurity response plan was activated immediately, the Texas-based company that provides drilling fluids systems and composite matting systems for the oilfield sector, said in its statement.
In his statement, Newpark stated that "the incident has caused disruptions and limitations in access to certain of the company's information systems and business applications that support aspects of the company's operations and corporate functions, including financial and operational reporting systems", and the company is still paying the price.
To continue operating uninterruptedly, the company reverted to downtime procedures, allowing it to safely continue manufacturing and field operations during the downtime period.
Based on the company's current understanding of the facts and circumstances regarding this incident, this incident appears not to have a reasonably likely impact on the company's financial situation or its results of operations, the company said in a statement.
Newpark declined to provide information about how the attackers accessed its network, as well as who might have been responsible for the incident, nor did it explain how they gained access. No ransomware group is known to be claiming responsibility for the attack, according to SecurityWeek.
About two months before the Newpark Resources breach, there was also a cyberattack on oilfield services giant Halliburton that was also announced in a regulatory filing by that company.
The company has just reported that as a result of the attack, Halliburton has incurred approximately $35 million in expenses. However, given that the company is one of the leading energy service companies in the world, the financial impact is relatively small.
The incident at Newpark Resources highlighted the importance of network segmentation in protecting networks, according to Chris Grove, director of cybersecurity strategy at Nozomi Networks. He says that when networks are under attack, network segmentation can ensure their security.
According to Grove, separating OT from IT is one way to minimize the risk of a security breach and possibly hurt key operations if there is a breach. However, organizations are facing an increasingly pressing challenge: securing the advantages of segmentation while enabling controlled connectivity, which is becoming increasingly difficult to maintain.
Cybersecurity Dive has been informed by researchers from NCC Group via email that there has been no public leak of data from the Newpark Resources attack and that there has been no claim made regarding the leak.
Neither the company nor the company's shareholders have been able to determine what costs and financial impacts will be associated with this incident, but about the company's financial condition and results of operations, they believe that the attack "is not reasonably likely to have a material impact."
As a manufacturer, seller, and rental company, Newpark Resources is dedicated to serving the petroleum industry and various other sectors related to energy, such as pipelines, renewable energy, petrochemicals, construction, and oilfields. In its Thursday earnings report, the Woodlands, Texas-based company disclosed quarterly revenue exceeding $44 million and projected an annual revenue reaching up to $223 million. This performance underscores the company's strong market presence despite recent challenges, though it remains under pressure following a recent ransomware attack by unidentified cyber actors.
As of Thursday, no specific hacking group had taken responsibility for the attack.
The oil and gas sector recognized as a globally essential industry, has increasingly become a focal point for ransomware attacks. Due to the industry’s high financial stakes and critical role in infrastructure, it is often targeted by cybercriminals who expect ransom payments to restore access to compromised systems. Notably, ransomware incidents have affected major players in the sector. Over the past four years, corporations such as Shell, Halliburton, Colonial Pipeline, Encino Energy, Oiltanking, and Mabanaft have experienced cybersecurity breaches that have disrupted operations and prompted significant financial and reputational impacts.
These incidents have drawn heightened attention from government entities, prompting federal authorities to pursue enhanced cybersecurity measures across critical infrastructure sectors. The rise in ransomware attacks has spurred the government to implement stricter cybersecurity regulations, with mandates designed to bolster defense mechanisms within vulnerable industries.
