* H1 net profit 412.1 mln eur vs 111.8 mln loss in H1 2008
* EBITDA up fourfold to 899 million euros
* Utility says achieving cost-containment targets
(Adds cost cuts, EBITDA margin target)
By Harry Papachristou
ATHENS, Aug 27 (Reuters) - Public Power Corp (PPC), Greece's biggest electricity producer, on Thursday reported a first-half net profit of 412.1 million euros ($586.7 million) versus a 111.8 million loss last year, on lower power generation costs.
PPC's profit beat analysts' average forecast of 386.4 million euros in a Reuters poll.
Falling energy prices allowed the state-controlled company to cut its fuel bill by 42 percent to 557.6 million euros. In addition, strong rainfall boosted lower-cost hydro power generation by 51 percent.
PPC's earnings are highly dependent on crude oil and natural gas price moves because the company's electricity tariffs are regulated by the government, hampering the passing on of costs to consumers.
Unable to control its fuel expenses, the company said earlier this year that it would try to reduce controllable costs by 90 million euros in 2009.
It saved 52.2 million euros in the first half, PPC said separately, in a presentation to investors.
As a result, earnings before interest, tax depreciation and amortisation (EBITDA) rose fourfold to 898.8 million euros, also above forecasts.
"PPC's good financial performance continued in July," PPC CEO Takis Athanasopoulos said in a statement. PPC stuck to its guidance for an EBITDA margin of about 26 percent for the full year.
PPC's sales grew 5.9 percent to 2.93 billion euros as a 7.3 percent increase in electricity prices offset a 4.9 percent drop in power demand. Greek industries consumed less energy as they scaled back production to cope with the global economic crisis.
A sharp economic slowdown in Greece is seen hurting sales volume more than initially estimated, dropping by between 4 to 5 percent for the full year, PPC said in the presentation.
PPC shares closed the session down 2.77 percent at 16.52 euros in Athens.
They have gained 40 percent so far this year, in line with the Greek stock market. The shares trade about 6 times estimated 2009 earnings compared with a multiple of about 16 at France's EDF. (Editing by Karen Foster)