* Rosneft says 2012 net income up 7 pct to 342 bln rbls
* Free cash flow down 54.5 percent to 45 bln rbls
* TNK-BP's $55 bln takeover to be closed in H1
MOSCOW, Feb 1 Rosneft, Russia's No.1
oil producer, reported on Friday a forecast-missing 7 percent
increase in 2012 net profit, while free cash flow halved ahead
of its $55 billion takeover of TNK-BP, sending its
Rosneft's shares fell 2.3 percent, underperforming a 0.1
percent decline in the Moscow market as the state oil
major joined gas export monopoly Gazprom in delivering
weak cash flow numbers symptomatic of heavy investment.
Rosneft reported a 54.5 percent drop in free cash flow to 45
billion roubles ($1.5 billion), although its acquisition of
cash-generative TNK-BP will bolster its ability to repay $30
billion in acquisition loans for Russia's largest takeover.
The deal to buy TNK-BP from BP and the AAR consortium
of Soviet-born billionaires is expected to close in the first
half of the year.
Rosneft's 2012 net income increased to 342 billion roubles
($11.4 billion) thanks to a rise in production and oil prices,
but missed analyst forecasts.
Analysts polled by Reuters expected full-year net income of
347 billion roubles..
Revenues increased 13 percent to 3.1 trillion roubles, the
company said in a statement, in line with expectations.
Last year, Brent crude hit a record average price of $112
per barrel, but some global majors, including ConocoPhillips
, reported a fall in core earnings as oil has become
harder to find and more expensive to extract.
Rosneft's earnings before interest, taxation, depreciation
and amortisation (EBITDA) declined 8 percent to 609 billion
roubles in 2012, compared to a Reuters poll forecast of 596