Shell has lowered its upper guidance limit for its gas output from between 950 million barrels of oil equivalent per day (boed) to 940 million boed.

In its latest trading statement, the oil and gas giant also cut its expected LNG production output’s upper limit from 6.9 million boed to 6.8 million.

The firm added that its trading and optimisation is set to be "significantly lower" in the second quarter compared to Q1.

The update comes after Shell’s chemicals business was hit by unplanned maintenance at its US polymer plant.

Furthermore, this sector of the business is also expected to trade significantly lower than the previous quarter, while its adjusted earnings are expected to be below break even.

The results come after Shell stated that it wants to explore strategic and partnership opportunities of its chemical assets in the US and might close some chemical businesses in Europe.

Investment analyst at AJ Bell, Dan Coatsworth, said the latest results teaser has "created trepidation" that the numbers may not impress investors.

Following the trading update, shares in Shell fell by over 2.5%.

Coatsworth concluded: "Shell will be announcing its upcoming earnings amid considerable volatility in the energy market and the wider global economy.

"Shell is looking to achieve a 4% to 5% per year increase in LNG sales over the next five years and a 1% annual increase in production. One quarter can be kept in perspective but if it becomes a trend then shareholders may get twitchy about the viability of these targets.

"Shell may face further questions when it unveils its results in full later this month about its intentions with regards to BP. Despite widespread speculation, Shell has denied it has any intention of merging with its stricken counterpart, but the story refuses to go away as BP’s struggles continue."

Shell will announce its second quarter results on 31 July.

---