* Q2 net income 35 bln roubles, above 31.3 bln in analystpoll
* First fully consolidated results after TNK-BP buyout
MOSCOW, July 29 (Reuters) - Russia's top oil producerRosneft reported 35 billion roubles ($1.07 billion) insecond-quarter net income, beating analyst expectations in itsfirst fully integrated results after its buyout of TNK-BP.
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, creating theworld's largest listed oil firm. As part of the deal, BP endedup with a 19.75 percent stake in Rosneft.
Rosneft's second quarter net income beat analysts'expectations of 31.3 billion roubles, but it was a third of the102 billion roubles which Rosneft reported in the first quarter.
The drop was due to foreign exchange losses as a result ofthe rouble weakening - amounting to a 55 billion rouble forexloss on its debt obligations in the second quarter, comparedwith an 11 billion roubles loss in the first.
The results were also negatively influenced by a 6 percentdecline in oil prices, year-on-year, and high export duties.
Adjusted free cash flow stood at 35 billion roubles in thesecond quarter, Rosneft said, slightly ahead of the firstquarter.
Analysts have said they would scrutinise the company'sability to generate cash as it pledged to pay a dividend of 25percent of its net income while repaying large debts taken onfor the TNK-BP deal.
Rosneft's shares edged down 0.4 percent, underperforming a0.12 decline in the broader market as of 1410 GMT.
Second-quarter sales stood at 1.18 trillion roubles, in linewith expectations, while net debt soared to over $56 billion asof June 30 from $18 billion a year ago.
Rosneft is hoping to refinance its debts after it secured a25-year deal estimated at $270 billion to more than double oilflows to China, which stand at over 300,000 barrels per day.
The company also confirmed reports of the departure ofEduard Khudainatov, first vice-president and a longtime ally ofIgor Sechin, the company's chief executive.