NEW YORK (CNN/Money) - Oil services firm Halliburton reported improved operating income that edged past Wall Street forecasts, although special charges led it to report a net loss for the period.

The company, which is a major provider of services to the U.S. government's operations in Iraq, earned $138 million, or 31 cents a share, from continuing operations, excluding special charges. That compares with EPS of 12 cents on that basis a year earlier. Analysts surveyed by earnings tracker First Call forecast EPS of 30 cents.

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The company took a previously announced charge of $62 million, or 14 cents a share, for losses on one disputed project. It also took a charge of $141 million, or 32 cents, for a proposed asbestos and silica settlement affecting discontinued operations. Overall, it reported a net loss of $65 million, or 15 cents, compared with earnings of 10 cents a share a year earlier.

The company, whose ties to Vice President Dick Cheney, its former CEO, has brought it additional scrutiny, said Iraq-related work contributed about $2.1 billion in revenues in the first quarter and $32 million in operating income. It did not give a year-earlier comparison for that work.

The company also said it continues to see improvement in the energy services business.

Shares of Halliburton (HAL: Research, Estimates) gained 77 cents to $31.67 in trading Tuesday ahead of Wednesday's pre-market report.