* Net profit 347.5 million eur vs 354 million forecast
* EBITDA down 16 percent to 821.1 million eur, below forecast
* Repeats profit outlook, sees strong competition
(Adds details)
ATHENS, Aug 26 (Reuters) - Public Power Corp (PPC), Greece's biggest electricity producer, said on Thursday first-half net profit fell 27 percent, hurt by higher fuel costs, taxes and lower power consumption as a result of the recession.
Net profit dropped to 347.5 million euros ($441.8) million, missing an average forecast of 354 million in a Reuters poll of analysts.
Sales fell 3.2 percent to 2.895 billion euros as power demand continued to slump, mainly due to production cuts by industry.
Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 16 percent to 821.1 million euros, also below analysts' forecast of 835.1 million.
This was mainly due to higher costs for natural gas and fuel which rose 28 percent as international energy prices increased and Greece's cash-strapped government slapped a tax on the company's diesel purchases.
PPC reiterated its pretax profit outlook for the full year, saying it would be "at about the levels" of the 626 million euros announced in February.
State-controlled PPC postponed the announcement of its new business plan until after the government reveals how it plans to liberalise the country's electricity market.
PPC's market share on mainland Greece, the only area where customers can choose between different electricity providers, fell by 9 percentage points year-on-year to 90 percent, it said. (Reporting by Harry Papachristou; Editing by Erica Billingham)