Suncor (SU) Faces Cyberattack, Raises Concerns About Transactions
Suncor Energy Inc. SU announced that it has experienced a cybersecurity breach. The company raised concerns about the potential compromise of customer and supplier transactions while it investigates and resolves the situation.
Suncor's operations include oil sands development, production, offshore oil and gas, and petroleum refining in Canada and the United States, as well as its Petro-Canada retail and wholesale distribution networks.
Below, we provide an overview of the cybersecurity breach, its potential impact on the oil and gas industry, and the company's response to the incident.
Details of the Incident
Suncor confirmed that it fell victim to a cyberattack, which is reportedly one of the biggest cybersecurity breaches in the history of the Canadian oil and gas industry. The exact nature of the attack remains undisclosed, as the company has not provided specific details regarding the affected systems or operations.
However, social media users reported difficulties using credit or debit cards at Petro-Canada gas stations and accessing car wash services over the weekend.
Impact on Operations
As a result of the incident, Suncor's operations, including the Petro-Canada retail locations across Canada, have been affected. Many Petro-Canada gas stations are unable to process credit or debit payments, leading to a cash-only situation.
The disruption extends to the Petro-Points app and website, which have also become unavailable. These operational challenges indicate the significant financial impact of the incident on Suncor. Cybersecurity experts estimate potential costs amounting to millions of dollars.
Data Security and Customer Impact
Although management has reassured customers, suppliers and employees that there was no compromise or misuse of their data, investigations are ongoing to determine the extent of the incident. The company's commitment to data protection and privacy remains a priority throughout the probe.
Suncor's prompt response and collaboration with third-party cybersecurity experts demonstrate its seriousness about resolving the situation and safeguarding the sensitive data of stakeholders.
Implications for the Industry
The incident highlights the increasing cybersecurity threat faced by Canada’s oil and gas industry. It serves as a reminder that companies operating in critical sectors must remain vigilant in implementing robust cybersecurity measures to protect their infrastructure, operations and customer data.
Zacks Rank and Key Picks
Currently, SU carries a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum EPM, sporting a Zacks Rank #1 (Strong Buy), and Archrock AROC and NGL Energy Partners NGL, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is worth approximately $280.79 million. EPM currently pays a dividend of 48 cents per share, or 5.69% on an annual basis.
The company currently has a forward P/E ratio of 7.64. In comparison, its industry has an average forward P/E of 19.90, which means EPM is trading at a discount to the group.
Archrock is valued at around $1.58 billion. It delivered an average earnings surprise of 8.34% for the last four quarters and its current dividend yield is 5.96%.
Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.
NGL Energy Partners is valued at around $498.68 million. In the past year, its units have risen 133.3%.
The partnership currently has a forward P/E ratio of 4.34. In comparison, its industry has an average forward P/E of 13.80, which means NGL is trading at a discount to the group.
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Suncor Energy Inc. (SU) : Free Stock Analysis Report
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