Russia's biggest independent gas producer, OAO Novatek (NVTK.RS), Friday said fourth-quarter net profit rose 29% driven by growing gas production, rising prices and increasing domestic market share.

Novatek's net profit for the three months rose to RUB12.11 billion ($422.3 million) from RUB9.38 billion a year earlier, according to calculations made by Dow Jones Newswires. That was largely in line with a Dow Jones Newswires survey of six analysts, who had estimated RUB11.96 billion.

Revenue for the October to December period increased 23% to RUB34.14 billion from RUB27.85 billion, while earnings before interest, taxation, depreciation and amortization, or Ebitda, rose to RUB16.25 billion from RUB13.23 billion.

Novatek's shares have more than doubled in value since May last year due to higher market share at the expense of state gas giant OAO Gazprom (GAZP.RS), as growth of gas tariffs has driven Russia's domestic gas consumers to seek more competitive supplies.

At 1519 GMT, the company's shares traded 2.6% lower at RUB350 each on the Micex exchange, which was down 0.5%.

Ildar Davletshin, an analyst at Renaissance Capital, said Novatek's results were strong, as expected, and that the share price should see further support in future due to political backing and a strong shareholder position.

"This should help the company secure more lucrative assets in Russia and possibly take an even bigger domestic market share," Davletshin said.

French energy giant Total SA (TOT) earlier this month announced it would buy a 12% stake in Novatek and raise its shareholding to 19% over the next three years. Total will also take a 20% stake in Novatek's Yamal LNG project.

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