* Q3 net income 280 bln rbls vs 284 bln in analyst poll
* Free cash flow 84 bln rbls in Q3 vs 35 bln in Q2
MOSCOW Oct 29 Russian state-owned energy company Rosneft, the world's biggest listed crude oil producer, said on Tuesday its third-quarter net income rose to 280 billion roubles ($8.77 billion), slightly missing analyst forecasts, after its acquisition of smaller rival TNK-BP .
Rosneft accounts for 40 percent of Russia's oil production, the world's largest, and its fast expansion has been a concern for analysts and some industry players who say that increasing state involvement in the oil and gas sector undermines competition, drives up costs and affects production.
Rosneft's net income was up from 35 billion roubles in the previous quarter and just short of a consensus analyst forecast of 284 billion roubles. It included a 167 billion rouble upwards revaluation of TNK-BP.
Adjusted free cash flow stood at 84 billion roubles in the July-to-September quarter, up from 35 billion roubles in the previous quarter, Rosneft said.
Its shares were up 1 percent as of 1000 GMT, outperforming a 0.2 percent rise of the broader market.
The company completed the $55 billion acquisition of TNK-BP, which was Russia's third-largest oil producer, from BP and a consortium of Soviet-born tycoons in March.
BP became a holder of 19.75 percent of Rosneft as a part of the deal.
After the acquisition, Rosneft became the world's top listed oil producer. It said its oil and liquids production edged up 0.2 percent to 4.193 million barrels per day in the third quarter compared with the previous three months.
The company plans to more than triple its oil supplies to China from around 300,000 barrels per day at present. It expects to publish a full third-quarter report later on Tuesday.