Shell (NYSE:SHEL) updated its Q3 guidance, the energy giant expects to lose money in its chemicals business, with refining margins in the segment expected to drop 29% to $5.50 a barrel. The chemicals margin is expected to move higher to $164 per tonne from $155 per tonne in Q2 despite marginal loss estimates for Q3.

Shell said it expected to report that liquefied natural gas production rose in the third quarter, and that quarterly gas trading was in line with the second quarter’s, potentially offsetting continued refining margin weakness.

Shell Plc saw refining margins decline in the third quarter and expects to lose money in its chemicals business, a performance that reflects the broader weakening of the economy.