Newpark Resources hit by ransomware; activates cybersecurity response
Texas-based oilfield services supplier Newpark Resources detected a ransomware attack by an unauthorized party accessing internal systems. The company activated its cybersecurity response plan and began investigating with external advisors to assess and contain the threat. However, the ransomware incident disrupted access to some of the company’s information systems and business applications, but manufacturing and field operations continued using downtime procedures.
“On October 29, 2024, the Company detected a ransomware cybersecurity incident (‘Incident’) in which an unauthorized third party gained access to certain of the Company’s internal information systems,” Newpark Resources disclosed in an SEC filing last week. “Upon detection, the Company activated its cybersecurity response plan and launched an investigation internally with the support of external advisors to assess and to contain the threat.”
The Newpark filing added that the incident has caused disruptions and limitations of access to certain of the company’s information systems and business applications supporting aspects of the company’s operations and corporate functions, including financial and operating reporting systems. However, the company’s manufacturing and field operations have continued in all material respects utilizing established downtime procedures.
“The full scope of the costs and related impacts of the Incident, including any future impact on our financial condition and results of operations, has not yet been determined,” Newpark added. “Based on the Company’s current knowledge of the facts and circumstances related to this incident, the Company believes that this incident is not reasonably likely to materially impact the Company’s financial conditions or results of operations. Should any of the relevant facts and circumstances substantively change, the Company will make any required disclosures.”
Newpark is a geographically diversified company that delivers superior quality and reliability across critical infrastructure markets, including electrical transmission and distribution, oil and gas exploration, pipeline, renewable energy, petrochemical, construction, and other industries.
In August, Halliburton, a global provider of energy industry services, revealed that a cyberattack compelled it to shut down some of its systems. Typically, such breaches involve unauthorized access by third parties, oftentimes, leading to operational disruptions, system shutdowns, and the activation of incident response plans. At the time, the company activated its cybersecurity response plan and launched an investigation internally with the support of external advisors to assess and remediate the unauthorized activity.
In its third quarter results announced last week, Halliburton said that it “recorded a pre-tax charge of $116 million in the third quarter of 2024 as a result of severance costs, an impairment of assets held for sale, expenses related to a cybersecurity incident, a gain on an equity investment, and other items.”
Jeff Miller, chairman, president, and CEO, remarked that Halliburton “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.”
“While in no way material, the update demonstrates cyber incidents are rising up the corporate agenda,” Andy Watkin-Child, founding partner at Veritas GRC, wrote in a LinkedIn post. “As board are more transparent as to the effects of cyber incidents, required under SEC cyber rules.”
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