Earnings reports failed to power energy stocks on Wednesday. Halliburton ( HAL), the big energy services firm known for its controversial contracts in Iraq, saw its shares slide after the company swung to a first-quarter loss despite a huge surge in revenue. Supermajor ConocoPhillips ( COP) also fell, even though it toppled analyst expectations. And power company Teco Energy ( TE) plummeted after falling well short of consensus estimates because of mild weather and operational setbacks. However, shrinking Dynegy ( DYN) -- the former trading powerhouse that once rivaled Enron -- provided a spark of excitement in the sector. The company's stock jumped on news of an unexpected quarterly profit instead of a slight loss. During the latest quarter, Halliburton saw its revenue rocket 80% to $5.5 billion -- topping the consensus estimate by $350 million -- after sales more than doubled at the Kellogg Brown & Root division that's performing work in Iraq. However, a big asbestos charge pushed the company to a $65 million net loss for the quarter. Profits from continuing operations, excluding yet another charge tied to a KBR project in Brazil, topped the 30-cent consensus by a penny. Yet KBR continues to operate in the red. The unit, hit by special charges on the troubled Brazilian contract, posted first-quarter losses both this year and last. And its most controversial projects continue to generate just razor-thin margins. "Halliburton's Iraq-related work contributed approximately $2.1 billion in revenues in the first quarter 2004 -- and $32 million in operating income," the company reported on Wednesday. In an earnings preview issued earlier this week, Merrill Lynch analyst Mark Urness had projected "improving profitability at KBR." He values the unit -- considered worthless by some -- at $4 a share and hopes to see it eventually sold off. Regardless, he recommends buying the parent's shares.