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HOUSTON, TX - Halliburton Co (NYSE:HAL), one of the world's largest providers of products and services to the energy industry, has reported a significant cybersecurity incident. According to a recent SEC filing, the company became aware on August 21, 2024, that an unauthorized party had accessed its systems.
The oilfield services giant immediately implemented its cybersecurity response plan, which included taking parts of its systems offline to prevent further unauthorized access. Halliburton also notified law enforcement, launched an internal investigation with external advisors, and began communicating with customers and other stakeholders about the incident.
The cyber breach resulted in disruptions and limited access to some of the company's business applications that support operations and corporate functions. Halliburton confirmed that the intruder had exfiltrated data from its systems and is currently assessing the nature and scope of the information compromised, as well as determining any required notifications.
Despite the severity of the breach, Halliburton stated that it has not experienced, and does not anticipate, a material impact on its financial condition or results of operations. The company continues to deliver its products and services globally and is actively working to restore affected systems.
The incident has led to incurred expenses related to the company's response, and Halliburton acknowledges that it remains subject to various risks due to the incident. These risks include potential litigation, changes in customer behavior, regulatory scrutiny, and the adequacy of processes during the period of disruption.
In other recent news, Halliburton's second-quarter earnings per share (EPS) of $0.80 were in line with consensus estimates, and a robust free cash flow of $793 million greatly exceeded expectations. However, its revenue of $5.83 billion fell short of projections, primarily due to lower than expected revenue in the North American market.
Additionally, Halliburton declared a quarterly dividend of $0.17 per share for the third quarter of 2024. Analyst firms Stifel, TD Cowen, Susquehanna, Piper Sandler, and RBC Capital have all adjusted their views on Halliburton, maintaining positive ratings despite downward revisions.
InvestingPro Insights
In light of Halliburton's recent cybersecurity incident, the company's financial stability and market performance remain critical factors for investors. According to InvestingPro data, Halliburton has a market capitalization of $27.45 billion and trades at a P/E ratio of around 10.2, which is considered low relative to its near-term earnings growth. This suggests a potentially attractive valuation for those looking at the fundamentals of the company.
Investors may also find reassurance in the company's consistent dividend payments, which have been maintained for 54 consecutive years. Additionally, Halliburton's liquid assets exceed its short-term obligations, providing financial flexibility in the face of unexpected challenges such as the cyber incident.
For those considering the stock's recent performance, Halliburton has been trading near its 52-week low, which could indicate a potential entry point for value investors. However, it's important to note that the stock has experienced a year-to-date price total return of -13.14%, reflecting the market's reaction to various factors, including the cybersecurity breach.
For a deeper dive into Halliburton's financial health and stock performance, including additional InvestingPro Tips, investors can visit InvestingPro, where over nine tips are available to help guide investment decisions.
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