Swiber's 4Q08 gross margins may fall short of its average 20-25% due to higher external chartering costs and weather downtime. We expect order awards for offshore construction projects to decelerate in 2009 and have revised our order assumptions for Swiber to US$350m from US$500m for 2009. Our earnings estimates have been cut by 3-9% for FY08-10. Our target price also drops to S$1.04 from S$1.38, now based on 5x CY10 EPS (from 6x). Swiber looks cheap at 2x CY10 P/E and 0.5x P/BV against an order book of about US$600m and a 3-year core earnings CAGR of 27%. Maintain Outperform.